Burger King IPO Is India’s Biggest Since 2017: 8 Interesting Facts You Should Know!
On its first day of trading, Burger King India Ltd. surged 131% marking its successful debut after a spurt of technology company listings helped boost the initial share sale pipeline.
Burger King IPO Listing
Burger King India Initial Public Offering(IPO) witnessed a subscription over 157 times more than the number of shares in its initial public offering earlier this month.
The Indian investors are betting the fast food chains with the opening of restaurants and businesses post-lockdown and vaccines on the way.
On its first day of trading, the stock began Rs 115 versus an offer price of ? 60.
Then it climbed to a high of Rs 138.40 at the 3:30 p.m. close of trade in Mumbai.
This is said to be the best debut since 2017 when Astron Paper & Board Mill Ltd. jumped 142%.
On the second day of its trading, the stock surged by 20% and trading at Rs 162 in NSE.
8 Facts To Stay Invested In Burger King
Let’s go through some list of facts about this operator of Burger King-branded restaurants which will help you to keep invested in the fast food chain.
- As per the company’s prospectus, the 4%-5% royalty paid to Burger King is comparatively lower than the range paid by franchisees of most comparable quick-service restaurants in India.
- According to the company’s franchisee agreement with Restaurant Brands International Inc, the Burger King brand is allowed in India until December 31, 2039.
- As per the agreement, it requires Burger King India to open at least 700 restaurants by the end of 2025.
- The market analysts had advised the investors to stay invested for the long term gain.
- “Even after such bumper listing, there is no issue with the valuation of the company. In the future, we expect the company to gain market share by opening more stores compared to the competitors,” said Keshav Lahoti, an equity analyst at Angel Broking in Mumbai.
- The first half of the fiscal year ending March was tough on the company with revenue declined by 68% year on year.
- Further the company reported losses due to the impact of Covid-19, as per the information provided by Hemang Jani, the head equity strategist at Motilal Oswal Financial Services Ltd.
- The launch of Burger King India’s IPO marks a broadening in the wave of debuts late in 2020, which have become increasingly dominated by technology companies.