The IPO for Quick Service Restaurant (QSR) chain Burger King will open on December 2. Burger King’s initial public offering (IPO) price band has been set at ₹59-60 per share. the ₹The 810 million rupee issue will close on December 4. The company 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.
Here are 10 things to know about Burger King’s IPO:
1) Lot size – Offers can be made for a minimum of 250 equity shares and in multiples of 250 equity shares thereafter.
2) Burger King’s IPO comprises a new issue of shares worth ₹450 crore, while the promoter QSR Asia Pte Ltd will sell up to 6 crore shares, adding to ₹360 crore.
3) The funds raised will be used primarily for the expansion of company-owned stores throughout the country and the payment of debts.
4) Kotak Mahindra Capital Company Limited, CLSA India Private Limited, Edelweiss Financial Services Limited and JM Financial Limited are the main managers of the Offer.
5) Link Intime India Pvt Ltd is the registrar for Burger King IPO and will handle allocation and reimbursement.
6) Indicative timeline of the IPO process: Burger King shares are proposed to be included in BSE and NSE. The share allocation is likely to end on December 9 and listing will take place on December 14, 2020, according to brokerages.
7) As a national master franchisee of the Burger King brand (global) in India, the company has the exclusive rights to develop, establish, operate and franchise Burger King brand restaurants in the country.
8) In May 2020, Burger King, in its own right, had made a pre-IPO placement. It allocated 13.2 million shares to the promoter who sells to the shareholder at a price of Rs. 44 per share which adds up to Rs. 58 crore. In another pre-IPO placement in November 2020, the company has raised ₹Rs 92 crore through preferential allocation of 15.7 million equity shares to Amansa Investment Ltd. at a price of Rs. 58.5 per share.
9) As a result, the size of the new problem has been reduced to ₹450 crore of ₹600 crore before.
10) Currently, Burger King has 268 stores, of which 8 are franchises located mainly in airports and the rest are owned by the company. (With contributions from the agency)
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