The initial public offering (IPO) of quick service restaurant (QSR) chain Burger King opened for subscription today and will close on December 4. For the issue of Rs 810 crore, Burger King has set a price band of Rs 59-60 per share. . Those who want to invest in the Burger King IPO should note that they have to bid for a minimum of 250 equity shares and in multiples of 250 equity shares thereafter.
Burger King has reserved 10% of the initial public offering for retail investors, up to 15% for non-institutional investors, and up to 75% 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 allocation of shares will be finalized on December 9 and their listing may take place on December 14. The IPO consists of a new issue of shares worth Rs 450 million and shares of the promoter QSR Asia Pte Ltd for Rs 360 million. The promoter is selling up to its six million shares.
Link Intime India Pvt Ltd, the registrar for Burger King IPO, is managing the allocation and reimbursement. The Book Managers conducting the Offering are CLSA India Private Limited, Edelweiss Financial Services Limited, JM Financial Limited and Kotak Mahindra Capital Company Limited.
The funds raised from the underwriting of the IPO will be used primarily to pay off debts and expansion of company-owned stores. Burger King is the national master franchisee of the Burger King brand (global) in India, thus it has exclusive rights to develop, establish, operate and franchise Burger King brand restaurants throughout the country.
The company, in May, had made a pre-IPO placement as a matter of law, Livemint reported. At that time, Burger King had allocated 13.2 million shares to the promoting selling shareholder at a price of Rs 44 per share. Then, in November, it made another pre-IPO placement. Under this, he received Rs 92 crore through the preferential allocation of 15.7 million equity shares to Amansa Investment Ltd.
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