Burger King India’s initial public offering (IPO) will open on Wednesday (December 2) and close on Friday (December 4). The Indian subsidiary of US-based Burger King has set the price band at ₹59- ₹60 per share for its IPO. Burger King’s IPO consists of a fresh issue of ₹450 crore and an offer for sale of 6 crore equity shares by promoter QSR Asia Pte Ltd.
Here is what you need to know about Burger King India’s IPO:
1. 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 ₹810 crore via its public issue, at a higher price band.
2. Investors can apply 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.
3. Burger King India had undertaken a pre-IPO placement, by way of rights issue, of ₹58.08 crore at a price of ₹44 per share to promoter and preferential allotment of ₹91.92 crore at a price of ₹58.50 per share.
4. 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.
{{/usCountry}}4. 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.
{{/usCountry}}5. The fresh issue size has been reduced to ₹450 crore from ₹600 crore earlier.
6. 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.
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. Under the Master Franchise and Development Agreement, the company has 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.
Burger King India’s ₹810 crore IPO opens tomorrow. Here’s what you need to know