Burger King IPO Opens for Bidding; Here is What You Should Know

The Initial Public Offering (IPO) of quick service restaurant (QSR) chain Burger King opened for subscription today and it will close on December 4. For the Rs 810 crore issue, Burger King has set a price band of Rs 59-60 per share. Those who want to invest into Burger King IPO should note that they have to make bids for minimum of 250 equity shares and in multiples of 250 equity shares thereafter.

Burger King has set aside 10 per cent portion of IPO for retail investors, up to 15 per cent for non-institutional investors and up to 75 per cent for qualified institutional investors. The company’s shares are expected to be listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange of India Limited (NSE).

The allotment of share will be finalised on December 9 and its listing may take place on December 14. The IPO consists of a fresh issue of shares worth Rs 450 crore and promoter entity QSR Asia Pte Ltd shares amounting to Rs 360 crore. The promoter is selling up to its six crore shares.

Link Intime India Pvt Ltd, the registrar of Burger King IPO, is managing allocation and refund. The book running lead managers to the Offer are CLSA India Private Limited, Edelweiss Financial Services Limited, JM Financial Limited and Kotak Mahindra Capital Company Limited.

The funds raised from the subscription of the IPO will mainly be used for paying off of debts and expansion of company-owned stores. Burger King is the national master franchisee of the Burger King (global) brand in India, so it has exclusive rights to develop, establish, operate and franchise Burger King branded restaurants across the country.

The company had, in May, undertaken a pre-IPO placement by way of right issue, reported livemint. Burger King at that time had allocated 13.2 million shares to the promoter selling shareholder at a price of Rs 44 per share. Then, in November, it undertook another pre-IPO placement. Under this, it received Rs 92 crore through preferential allotment of 15.7 million equity shares to Amansa Investment Ltd.

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