(Aditya Shaw, Intern Journalist): Burger King IPO opens on Wednesday. The price range has been fixed at Rs 59-60 per share for bidding shares under the company’s initial public offering (IPO). The Indian subsidiary of US-based Burger King will raise Rs 810 crore under this IPO. It will issue new shares worth Rs 450 crore.
Regarding the IPO of this company, the brokerage says that it can be subscribed to the issue price. However, he also says that the company’s near financial condition is going to be under pressure. In such a situation, it is important to know some things before investing in it. The company said that the funds raised through the IPO would be used primarily to expand company-owned stores across the country and to repay debt.
The company will issue new shares worth Rs 450 crore. In addition, its promoter unit QSR Asia will sell up to 60 million shares, valued at around Rs 360 crore. The company has raised Rs 58.08 crore through a rights issue and Rs 91.92 crore through preferential allocation as part of pre-IPO planning.
This IPO is closing on December 4. Share allocation can be finalized by December 9. At least 250 shares will have to be bid. It is believed that this company will be listed in the Indian stock market on December 14. The company has secured 10 percent shares for retail investors, 15 percent for non-institutional investors, and 75 percent for qualified institutional investors.
The company opened its first restaurant in India in November 2014. Today, the company has 261 restaurants in 17 states and union territories in India. These restaurants are in 57 cities. Domino’s Pizza stood first in the QSR sub-segment with a 21 percent market share in FY 2020 in terms of sales. McDonald’s (11 percent) was second, KFC (10 percent) third and Subway (6 percent) fourth. Burger King had a 5% stake in the OSR sub-segment.
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