Burger King India IPO: Study Before Subscribing

Burger King IPO, India’s fastest growing quick-service restaurant chain, opens for subscription next week on December 2, 2020. Burger King also known as “Home of the Whoppers’ is a well-recognized brand globally. The company plans to raise Rs 810 cr through a mix of fresh issue of shares and offer for sale. Here’s all about the company and the issue to study before subscribing.

About Burger King India Ltd.

The Burger King brand is the second-largest fast-food burger brand globally as measured by the total number of restaurants.

As the national master franchisee of the BURGER KING® brand in India, they have exclusive rights to develop, establish, operate, and franchise Burger King branded restaurants in India. The master franchisee arrangement provides them with the ability to use Burger King’s globally recognized brand name to grow the business in India.

It has a global network of 18,675 restaurants in more than 100 countries and U.S. territories as of September 30, 2020.

As of November 25th, 2020, it had 259 restaurants, including 9 Sub-Franchised Burger King Restaurants, across 17 states and union territories and 57 cities across India, and out of it, 249 were operational.

Burger King India IPO Issue Details

OPENS ON:Dec 2, 2020
CLOSES ON:Dec 2, 2020
Price band:Rs. 59 – Rs. 60 per share
Lot size:250 shares
1 lot costing:Rs. 15,000
Listing on:NSE, BSE
Issue size:Rs. 810 cr (Fresh issue: Rs. 450 cr + Offer For Sale: Rs. 360 cr)
Offer for sale:Consists of the sale of up to 60 million shares by promoter entity QSR Asia Pte Ltd
Shareholding:Promoter holding will stand at 60.08% post-issue from 94.34% pre-issue.

Will list on the exchange on Dec 14, 2020.

Use of funds:
– To finance the roll-out of new company-owned Burger King Restaurants
– To meet the general corporate purposes

Interesting facts about Burger King India IPO:

  • The Burger King brand is the 2nd largest fast-food burger brand globally measured by the total number of restaurants, with a worldwide network of over 18,675 restaurants in more than 100 countries and U.S. territories as of September 30, 2020.
  • Burger King was the fastest growing international QSR chain in India during the first five years of their operations, based on the number of restaurants.
  • Company plans to expand its number of restaurants to approximately 300, including Sub-Franchised Burger King Restaurants open by December 31, 2021.
  • Revenue from the sale of food and beverages grew from Rs 3,752 mn in FY18 to 8,353.23 mn in FY20.
  • Gross margin grew from Rs 2,322.07 mn in FY18 to Rs 5,367.97 mn in FY20.
  • The COVID-19 pandemic has had a significant impact on the results of operations at the end of FY20 and in the first half of FY21.

Marwadi Shares and Finance Ltd have a ‘SUBSCRIBE’ recommendation for Burger King India IPO. To apply for Burger King India IPO, one can do it from our website Marwadi Shares and Finance Ltd.

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