Burger King’s initial public offering was signed more than three times on the first day of bidding. The Rs 810-crore issue was opened for subscription on Wednesday and investors can bid until December 4.
The IPO attracted offers for 23,32,00,750 shares compared to the issue size of 7,44,91,524 shares, reported Economic times. Burger King, the quick service restaurant (QSR) chain, on December 1 raised Rs 364.5 crore from anchor investors.
According to Financial expressShares reserved for retail investors were subscribed 14.3 times as of the afternoon, while non-institutional investors attracted offers for 53 percent of the shares. Qualified Institutional Buyers (QIBs) bid for 17 percent of their reserved portion.
Burger King has reserved up to 75 percent of the issuance for QIB and 15 percent for non-institutional investors (NII). It has reserved 10 percent of the shares for retail investors. The company has set a price band of Rs 59-60 per share.
The IPO comprises a new issue worth Rs 450 crore and shares of the promoter QSR Asia Pte Ltd worth Rs 360 crore. The promoting entity consists of up to six million shares. The shares will be listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange of India Limited (NSE). They will be assigned on December 9 and the listing will take place on December 14.
Assignment and redemption are handled by Burger King’s IPO registrar, Link Intime India Pvt Ltd. CLSA India Private Limited, Edelweiss Financial Services Limited, JM Financial Limited and Kotak Mahindra Capital Company Limited are the principal administrators of the Offering.
In May, Burger King had made a pre-IPO placement by issuing rights, allocating 13.2 million shares to the promoter’s selling shareholder at Rs 44 per share. It also made another pre-IPO placement in November, increasing Rs 92 crore through the preferred allocation of 15.7 million shares.
The money received from the IPO will be used to pay off debts and expand the stores owned by the company. The company currently operates 268 stores in India.
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