Burger King India IPO to open on Dec 2: Check issue price, all details
Burger King India Ltd, the Indian subsidiary of US-based Burger King, has set the price band at Rs 59- Rs 60 per share for its initial public offering (IPO), which is expected to launch for subscription next week. Burger King’s IPO consists of a fresh issue of Rs 450 crore and an offer for sale of 6 crore equity shares by promoter QSR Asia Pte Ltd.
Burger King India’s IPO price band is 5.9-6 times of its face value of equity shares and the company aims to raise Rs 810 crore via its public issue, at a higher price band.
Here is all you need to know about Burger King India’s IPO:
1. Burger King India’s initial public offering will open on December 2 and close on December 4.
2. The company had undertaken a pre-IPO placement, by way of rights issue, of Rs 58.08 crore at a price of Rs 44 per share to promoter and preferential allotment of Rs 91.92 crore at a price of Rs 58.50 per share.
3. According to the Burger King India’s IPO advertisement in newspapers, the fresh issue size has been reduced to Rs 450 crore from Rs 600 crore earlier.
4. Burger King India has said it will use the funds to roll out of new company-owned Burger King Restaurants by way of repayment or prepayment of outstanding borrowings of the company obtained for setting up of new company-owned Burger King Restaurants and capital expenditure incurred for setting up of new company-owned Burger King Restaurants.
5. Bids can be made for a minimum of 250 equity shares and in multiples of 250 equity shares thereafter. Retail investors can apply for maximum up to 3,250 equity shares at higher price band.
6. The company has reserved up to 10% portion of IPO for retail investors, up to 15% for non-institutional investors and up to 75% for qualified institutional investors.
7. Kotak Mahindra Capital Company, CLSA India, Edelweiss Financial Services and JM Financial are the book running lead managers to the issue. Equity shares are expected to debut on bourses around December 14, 2020.
8. The company is required to develop and open at least 700 restaurants, including company-owned Burger King Restaurants and sub-franchised Burger King Restaurants, by December 31, 2026, which has recently been extended by one year from December 31, 2025, due to the coronavirus pandemic. This is under the Master Franchise and Development Agreement.