Burger King India announced its plan to go public. The fast-food company will commence with its IPO plan next Wednesday, December 2. Here are several things to note on the upcoming IPO!
Burger King India: brief on the IPO
The fast-food chain will commence with its IPO plan on December 2. Noted from Economic Times India, Burger King is set to offer up to Rs 450 crore of fresh issue along with offer for sale ranging up to 6 crore equity shares. With the price band set at Rs 59-60, the OFS will value to Rs 360 crore at the upper limit of the price band. In total, Burger King IPO is Rs 810 crore.
The minimum subscription is one lot of 250 shares. However, individual investors may bid up to 3,250 shares. No employee quota is provided. The company will be listed under the BSE and the NSE, with BSE administering the stock exchange and purpose of the offer. The IPO subscription will end by December 4th, and soon finalized around December 9th. The listing of Burger King itself is expected to be done by December 14th.
More about sales growth, and future prospect
First launched in November 2014, there are at least 261 restaurants across India now. While Economic Times India reported that Burger King falls behind in terms of QSR sub-segment sales, the company is still leading as a new entrant with 5% sales in the OSR sub-segment. Furthermore, Burger King recorded the best sales growth for FY16-20 with 56.3%. Within the same period, its competitors such as McDonald’s only achieved 16%, while Domino’s recorded 12%.
Burger King India rightfully owns the permit to develop, establish, operate and franchise the brand restaurants in India. Accordingly, Economic Times India noted that proceeds from the IPO will be used to proceeds on new company-owned Burger King restaurants launch. The proceeds will also be allocated for borrowings repayment or prepayment.
Read also: Surviving in the Middle of COVID-19, KFC Changes its Business Concept
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