Burger King IPO: Things You Should Know About Rs 810 crore Issue Opening On Dec 2

Burger King IPO: The India business of the US-based quick service restaurant chain had to defer its IPO plan due to Covid-19 outbreak which impacted markets globally.

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Burger King IPO:  At a time when hospitality industry has taken a huge hit owing to pandemic, Burger King India Ltd is going ahead with its three-day initial public offering on Wednesday. The India business of the US-based quick service restaurant chain had to defer its plan due to Covid-19 outbreak which has impacted markets globally. As the national master franchisee of the Burger King brand in India, Burger King India has exclusive rights to develop, establish, operate and franchise Burger King branded restaurants in India. Here is what you should know about the upcoming IPO. How much the company is aiming to raise? The burger chain operator intend to raise Rs 810 crore through the maiden offer, the price band for which has been fixed at Rs 59-60 apiece, as per the red herring prospectus. The IPO comprises a fresh equity issue worth Rs 450 crore and an offer-for-sale of 6 crore shares by promoter QSR Asia Pte Ltd. worth Rs 360 crore. Things to remember about the IPO The Issue opens on December 2 and closes by December 4. The face value wil remain Rs 10 per share and the listing will take place on NSE, BSE with minimum bid of 250 shares. What’s the reason behind the listing? The company wants to use the proceeds from the share sale to repay borrowings and open new outlets. Kotak Mahindra Capital Market Ltd., CLSA India Pvt. Ltd., Edelweiss Financial Services Ltd. and JM Financial Ltd. are the lead managers to the issue. The company had 261 restaurants including eight sub-franchised Burger King Restaurants across 17 states and union territories and 57 cities in India as of September 2020. How much the company has raised so far? In its pre IPO, the company through rights issue, allocated 1.32 crore equity shares at Rs 44 apiece to QSR Asia. That amounted to Rs 58.08 crore. The company has also raised Rs 91.92 crore through preferential allotment of shares to Amansa Investments Ltd. at Rs 58.5 apiece. In 2020, 12 share sales have cumulatively raised nearly Rs 25,000 crore, according to a PTI report, with most of them listing at a premium to their issue price. That, it said, compares with the Rs 12,362 crore mopped up through 16 maiden offers in the entire 2019. When was the IPO planned earlier? Burger King had initially planned to raise money in March but had to delay the offerings after the equities market crashed on fears of a global economic slowdown due to pandemic. It is only after the activities in the secondary market rebounded on the optimism stemming from the fiscal and monetary stimulus announced by the government and central bank.