Burger King Share Listing: Stellar Debut On Bourses As Share Prices Nearly Double On Listing

A bumper listing of 70-75 percent over issue price has been estimated on the back of the company's stronger subscription coupled with cheaper valuation compared to listed peers and strong revenue growth.

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Burger Kind IPO: After creating a lot of buzz upon receiving an overwhelming response to its initial public offering, the quick-service restaurant chain Burger King made a strong opening premium of 92.25 percent on the first day of trade on Monday. The Rs 810 crore IPO in its initial public offer was subscribed 156.65 times. The issue was fixed at the price range of ₹59-60 per share.  The stock opened at Rs 115.35 , against issue price of Rs 60 on the BSE, while on the National Stock Exchange, shares made a debut at Rs 112.50, a 87.50 percent premium over IPO price. On the back of stronger subscription coupled with cheaper valuation compared to listed peers and strong revenue growth due to the expansion in outlets, there were expectations of a bumper listing of 70-75 percent over issue price on Monday. At 10:03 hours IST, the stock was trading at Rs 112, up 86.67 percent on the BSE, while it was trading at Rs 112.40, up 87.33 percent on the National Stock Exchange. Burger King India offers an opportunity to play on India's fastest growing quick service restaurants (QSR) chains business.  Although the company remains in the early stage of growth in India, the QSR chain can witness growth in the next two years of investing horizon as future outlook seems to be promising. The IPO initial share sale got oversubscribed within a few hours of opening for subscription on December 2. The portion meant for qualified institutional buyers (QIBs) was subscribed 86.64 times, non-institutional investors 354.11 times and retail individual investors (RIIs) 68.15 times. The IPO included a fresh issue of shares worth ₹450 crore. Burger King India had raised ₹364.5 crore from anchor investors. Kotak Mahindra Capital Company, CLSA India, Edelweiss Financial Services, and JM Financial were the managers to the offer. Currently, the quick service restaurant (QSR) chain operates 268 stores in India and out of them, eight are franchises, mainly located at airports, while the rest are owned by the company. The ₹810-crore Burger King IPO included a fresh issue of shares worth ₹450 crore. The issue emerged as the top-three most-subscribed IPO this year along with Happiest Minds Technologies and Mazagon Dock Shipbuilders. Promoter entity QSR Asia Pte Ltd sold up to 6 crore shares through the IPO. At the upper end of the price band, the sale fetched ₹360 crore. 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. Burger King India runs the franchise of Restaurant Brands International Inc's US chain Burger King. Currently, the quick service restaurant (QSR) chain operates 268 stores in India, most of them owned by the company. The company plans to use the IPO proceeds to open new stores and reduce debt. The burger chain aims to expand the chain and have around 700 restaurants across the country by 2026.