Burger King IPO: What US-based Fast-Food Major’s India Unit Listing Means For Investors?

Those investors who are not allotted any shares this time can pick up some when the shares undergo correction after listing on the stock exchanges.

Burger King IPO: The Rs 810-crore initial public offering of Burger King India Ltd has garnered a huge response from investors and likely to get listed on the stock exchanges early next week. The US-based fast-food major’s India unit, is a joint venture between BK Asiapac Pte Ltd, a subsidiary of Burger King Holdings and F&B Asia Ventures (Singapore) Pte Ltd. The IPO is expected to do well for investors.

The IPO emerged as the top-three most-subscribed IPO this year along with Happiest Minds Technologies and Mazagon Dock Shipbuilders.The issue was fixed at the price range of ₹59-60 per share. The retail individual investors segment was subscribed 68.15 times while the portion meant for qualified institutional buyers (QIBs) was subscribed 86.64 times and non-institutional investors subscribed it for 354.11 times.

What are chances of your allotment?

Investors stand lesser chances of getting the shares at the upper end of the price band of Rs 60 since the IPO has evoked a huge response from investors. However, those investors who are not allotted any shares this time can pick up some when the shares undergo correction after listing on the stock exchanges.

How to check the share allocation?

The shares of the fast food chain are likely to get listed on BSE and NSE on 14th December, according to brokerages. Those who had bid for the issue can check the share allocation status on the website of Link Intime India, which is the registrar of Burger King IPO. The registrar manages share allocation and refund. Burger King India IPO had subscribed a massive 156.65 times. On Link Intime India's web portal (https://linkintime.co.in/MIPO/Ipoallotment.html), you have to select the IPO whose data will be populated only when the basis of allotment is declared.

You will need a PAN or application ID or client ID and DPID (depository participant identification) to check the exact information.

The other way of checking the IPO allotment status is via stock exchange. On BSE, you can click her at https://www.bseindia.com/investors/appli_check.aspx

Can you expect a premium on listing?

Most analysts believe the shares are likely to be listed at a premium. The shares were been quotes at a premium of 70-75 per cent in the unofficial grey market. So, those nvestors who get the allotment can expect to witness a good appreciation on the listing day. However, it will remain a question whether they should hold the shares or book profits. Analysts point out that at 2.7x P/Sales (price to sales ratio), the share appears cheaper compared to 10.4x P/Sales and 6.32x for Jubilant Foodworks and Westlife Development respectively.