Burger King IPO review

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Burger King IPO intends to elevate the funds by ₹450 crores. The stated objective was set right after the approval of  The Securities and Exchange Board of India (SEBI) for Burger King to go public. It seems that Burger-King IPO involves a novel issue of equity shares. The value of the IPO accumulates up to ₹450 crores and 6 equity shares of QSR Asia are offered for the sale.

The financial performance of Burger King since 2017 is given below(INR crore).

2017 2018 2019 2020
REVENUE 234.1 388.7 644.1 214.3
EXPENSES 306.0 471.0 682.4 216.0
NET INCOME -71.8 -81.4 -38.6 -2.1
NET  MARGIN -30.7 -20.9 -6.0 -1.0

 

According to the provided data, from the year 2017 to 2019, there has been an increase in the revenue from ₹2282.86  million to ₹6285.86 million. ₹2108.87 million was the revenue from food and beverages for 3 months till June 2019. Although the sale developed by 12.23% and 29.2% over 2018 and 2019. Gross margin increased from ₹1365.63 million to ₹4003.58 million in 2017 and 2019 respectively.

In general, Burger King exhibits pleasant development in view of profit and revenue. So, it can be considered as an exceptional chance for investors who prefer profitable IPOs.

BURGER KING IPO in INDIA

Burger King acquired sanction for its IPO on January 24, 2020, for which Draft Red Herring Prospectus (DRHP) was filed with SEBI on November 02, 2019. Link Intime India Private Ltd is the registrar for the IPO. The shares are proposed to be listed on BSE, NSE. The IPO matter incorporates a subsidiary share sale of modern fundraising of ₹450 crores and private equity major of 600 crores.

BURGER KING IPO DATES

IPO OPENING DATE December 02, 2000
IPO CLOSING DATE December 04, 2000
BASIS OF ALLOTMENT FINALIZATION December 09, 2000
REFUND INITIATION December 10, 2000
CREDIT OF SHARES TO DEMAT ACCOUNT December 11, 2000
LISTING ON NSE AND BSE December 14, 2000

 

BURGER KING IPO DETAILS

IPO DATE December 02,2020-December 04,2020
ISSUE TYPE Book Built Issue IPO
ISSUE SIZE Up to ₹450 equity shares
IPO SIZE approximately ₹400 crores
FRESH ISSUE ₹7.5 crores
OFFER FOR SALE ₹6 crores
FACE VALUE ₹10 per equity share
PRICE BAND ₹59-₹60 per share
LISTING ON BSE, NSE

 

IPO of 135,000,000 shares with a face-value of ₹10 per equity share is offered at a rate of ₹59-₹60 per share.

250 equity shares are the minimum bid lot and subsequently, in the multiple of 250 shares. The minimum lot size varies from 1 to 13, allowing the investment from 250(min) to 3250(max) shares at an elevated price band. Accordingly, ₹14,750-₹15,000 is the minimum bid span and ₹191,750-₹195,000 is the maximum bid span.

Furthermore, 10% IPO part for retail investors has been reserved by the company along with 15% for non-institutional investors and up to 75% for Qualified Institutional Investors.

BURGER KING IPO SIZE

Consultation with the BRMLs and the novel issue of ₹75,000,000 equity shares which add up to ₹450 crores by Burger King is considering a pre-IPO placement of many amounts of equity shares. Before the filing of Red Herring Prospectus with the Roc, these shares collects up to ₹1,500 million. As a result of the pre-IPO completion, the amount of equity share will be decreased from the fresh issues. Also, subject to the 10% minimum offer size of the post-offer paid-up shares of Burger King which will be put forward to the public.

OBJECTS OF BURGER KING IPO ISSUE

  • The company will utilize the funds for their own Burger King Restaurants and also to set up new owned Burger King Restaurants.
  • General corporate purposes.

OFFER PRICE OF BURGER KING IPO

The IPO issue price is decided after negotiating with BRLMs. It is resolved in accordance with the given Qualitative and Quantitative factors.

Qualitative Factors:

  • The vital growth process of restaurants.
  • Convenient and expandable supply chain.
  • Skilled, enthusiastic, and professional management team.
  • Efficient customer statement.
  • Operational quality through people-centric working culture along with a productive technology system.

Quantitative Factors:

  • Basic and Diluted Earnings per Share(EPS) at face value of 10 each.
  • Price/Earning(P/E) ratio [Price Band of 59 to 60 per Equity Share].
  • Return on Net Worth(RONW).

BOOK RUNNING LEAD MANAGERS OF BURGER KING IPO

  • CLSA India Private Limited
  • Edelweiss Financial Services Limited
  • Kotak Mahindra Capital Company Limited
  • JM Financial Limited

GREY MARKET PREMIUM OF BURGER KING IPO

  • Grey Market Premium price of Burger King IPO is ₹20-₹25 on November 27,2020.
  • The Kostak rate is ₹5500.
  • The subject of Sauda is N/A.

BURGER KING INDIA COMPANY OVERVIEW

Burger King India is the national master franchisee of the Burger King brand in the country. It is one of the fastest-growing QSR chains in India. The first Burger King Restaurant in India was opened in November 2014. It has been developed promptly since then. With a well-determined restaurant roll out and efficient growth process, Burger King was able to open 202 restaurants all across India by June 30, 2019. This also includes seven Sub-Franchised Burger King Restaurants, across 16 states and union territories and 47 cities in India.

REGISTRAR OF BURGER KING IPO

Link Intime India Private Limited
C-101, 1st Floor,
247 Park, Lal Bahadur Shastri Marg
Vikhroli (West)
Mumbai, Maharashtra 400 083
Tel: +91 22 4918 6200
E-mail: [email protected]
Investor grievance E-mail: [email protected]
Contact Person: Shanti Gopalkrishnan
Website: www.linkintime.co.in

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