The stock of Burger King was trading at Rs 119.5 per piece minutes after the opening bell. The American multinational chain of hamburger fast food restaurants has its domestic arm in India, which is one of the fastest growing Quick Service Restaurant (QSR) chains in the country.
The Burger King share debuted at Rs 115.35 per share and was up 92 percent from the issue price of Rs 59-60 per share. Minutes later, the stock was trading at Rs 119.5 per piece. The initial public offering of the company was oversubscribed by investors. It became the second most subscribed IPO of 2020, as it was subscribed over 156 times.
There was a gain of 3.4 percent from listing price in the share of Burger King. The firm had a market capitalisation of Rs 4,402 crore. Before the shares of the company debuted on the stock market, they were trading at 83% premium over the weekend in the unlisted market.
Non-institutional investors subscribed to the stock massively, with many bidding for their portion of issues 354 times. The portion of Burger King’s IPO was oversubscribed 85 times by the Qualified Institutional Buyers. Retail investors oversubscribed their portion 67 times.
The promoters of the company now hold a stake of 60.1 percent after the issue. Pre-issue, the stake was 94.3 percent. The public shareholding was 5.7 percent pre-issue but it has increased now to 39.9 percent.
It has been reported that the company will use most of the fresh issue amount to fund fresh roll out of new restaurants because it will aim to reach the target of 700 restaurants by 2026. Around Rs 360 crores will be achieved from the Offer For Sale (OFS) for the promoters of the firm and Rs 450 crore will be raised from the issue.
From Rs 378 crore in 2017, the income of Burger King has increased to Rs 841 crore in the previous fiscal year. Over the same period, the EBITDA has gone up from Rs 8 to 103.9 crore. The highly recognised brand value and growth potential of the QSR industry has continued to attract investors although the company continued to make net losses.
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