Burger King is one of the fastest growing QSR companies in India; has been growing at a CAGR of 98% for 5 years with the quarter affected by Covid-19
Burger King India’s initial public offering (IPO) received a strong response from retail investors on the first day of the bidding process. The Rs 810-crore issue received offers for 64.08 crore shares against 7.44 crore equity shares on offer, which implies a total subscription of 8.60 times, so far. Most brokerages suggest subscribing to one of the fastest growing international QSR chains in India for listing gains. The issue is sold in the price band of Rs 59-60 each. Link Intime India Pvt Ltd will manage the allocation and redemption of the issue and is the registrar for the IPO of Burger King India.
According to the exchange data, the retail portion saw nearly 37 times the apps, with retail having the lowest allocation share of just 10 percent. Meanwhile, non-institutional investors (NII) and Qualified Institutional Buyers (QIB) subscribed 3.32 times and 1.79 times, of their respective quotas. These two categories are typically subscribed most on the last day of the three-day bidding process. Burger King India has reserved up to 75 percent of the issue for QIBs, while 15 percent for NIIs.
Subscribe to Burger King India for Trading Profit
GEPL Capital analysts recommend ‘subscribing’ to Burger King India’s IPO for listing gains. At a price above Rs 60, the offering is priced at 14.8 times FY20 CFO (Cash Flow from Operations) per share. “As a long-term investment, we would wait a few quarters to see signs of a sustainable recovery in same-store sales growth and the ability to pay outstanding obligations with debt to sustainable equity,” Gaurav Hinduja, Associate Analyst at GEPL Capital said.
Research and brokerage firm Motilal Oswal Financial Services has also suggested subscribing to the issue to quote earnings. The brokerage firm said that considering Burger King India’s strong brand positioning, strong store expansion plans and bright growth prospects for the QSR industry in India, it expects its finances to improve in the future. Net debt / equity as of September 2020 was 3.3x, which after the IPO will be reduced to zero.
Burger King is one of the fastest growing QSR companies in India; It has been growing at a 98% CAGR for 5 years with the quarter affected by Covid-19. “Therefore, we expect the growth trajectory to continue and its financial position to improve in the future. Therefore, we recommend subscribing to the topic, ”analysts at Dealmoney Securities said.
Get Live Stock Prices from BSE, NSE, US Market & Latest NAV, Mutual Fund Portfolio, Calculate Your Taxes with Income Tax Calculator, Learn Top Winners, Top Losers, and Top market capital funds. Like us on Facebook and follow us on Twitter.
Financial Express is now on Telegram. Click here to join our channel and stay up to date with the latest news and updates from Biz.
.
