The initial public offering (IPO) will open on December 2, for three days. The price band for the IPO has been set at Rs 59-60 per share. Burger King India Ltd, a quick service restaurant chain, aims to raise Rs 810 crore by reissuing shares worth Rs 450 crore, and offering for sale of up to 60 million shares by promoter QSR Asia Pte Ltd worth Rs 360 crore. at the upper end of the price band.
Now why do they fundraise?
The net proceeds from the new issuance are proposed to be used to finance the launch of new company-owned Burger King restaurants through: repayment or prepayment of outstanding company loans and for general corporate purposes, the company said in its prospectus for red herring. . Under the Master Franchise and Development Agreement, the business must develop and open at least 700 restaurants by December 31, 2026.
The company has also raised pre-IPO financing of Rs 92 million from public markets investor Amansa Investments Ltd. Shares were allocated to Amansa at a price of Rs 58.5 per share.
Burger King has reserved up to 10% of the initial public offering for retail investors, up to 15% for non-institutional investors and up to 75% for qualified institutional investors. Offers can be made for a minimum of 250 equity shares and in multiples of 250 equity shares thereafter. Equity shares are expected to debut on the exchanges around December 14, 2020.
Should you invest in it or not? Gaurav Garg, Head of Research, CapitalVia Global Research Limited and Vinit Bolinjkar, Head of Research, Ventura Securities answer that on the podcast
Dear reader,
Business Standard has always strived to provide up-to-date information and comments on developments that are of interest to you and that have broader political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering has only strengthened our determination and commitment to these ideals. Even during these difficult times arising from Covid-19, we remain committed to keeping you informed and up-to-date with credible news, authoritative opinions, and incisive commentary on relevant current affairs.
However, we have a request.
As we fight the economic impact of the pandemic, we need your support even more so that we can continue to bring you more quality content. Our subscription model has received an encouraging response from many of you, who have subscribed to our content online. Increased subscription to our online content can only help us achieve the goals of bringing you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practice the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.
Digital editor
.
