Burger King IPO share allotment status to be announced today: check here

With an over-subscription of 157 times, Burger King India IPO became the second-most subscribed offer in calendar year 2020. The shares are expected to get listed on December 14

The allotment status of Rs 810-crore initial public offer (IPO) of Burger King India will be announced on Wednesday, December 9. With an over-subscription of 157 times, the IPO became the second-most subscribed offer, after Mazagon Dock Shipbuilders, in calendar year 2020. 

Applicants who applied for the IPO can check their allotment status on either BSE website or Link Inktime website. 

An applicant tracking BSE website (link here) can check on "Equity" box and select his/her "Issue Name" in the dropdown menu (UTI AMC). After that, the person needs to type his/her "Application Number" in the box, "Permanent Account Number (PAN No.)" and click on "Search" button.

Investors may also check the status on Link Inktime India (link here) and follow the same steps as mentioned above.

Quick service restaurant (QSR) Burger King India's IPO generated bids for 11.7 billion shares, worth Rs 70,000 crore, as against only 75 million on offer. Demand in three categories of the IPO garnered robust response from investors. The qualified institutional buyer (QIB) portion was subscribed 87 times, excluding the demand in the anchor segment. The high networth individual (HNI) and the retail portion were subscribed 354 times and 68 times, respectively. The retail quota for this IPO was 10 per cent, as the company failed to meet the profitability criteria, compared to 35 per cent in regular IPOs.

According to ICICI Securities, reduced competition from unorganised smaller local restaurants due to Covid-19 related disruptions and expansion of food delivery businesses, the company is well positioned to expand its footprint in India. They believe Burger King India would be able to capture the growth largely aided by changing habits of eating out/ordering outside food.

Analysts at Geojit Financial Services, on the other hand, remain positive on the company from long-term perspective as it enjoys exclusive rights to develop, establish, operate & franchise Burger King branded restaurant; is specifically targeted and positioned towards large millennial population in India; registered revenue growth of 49 per cent CAGR over FY18-FY20 led by significant store additions; and as the company plans to continue to build its restaurant network using cluster & penetration strategy. 

"At the upper price band of Rs. 60, BKIL is available at 29x FY20 EV/EBITDA & 3.6x FY20 EV/Sales which seems attractive considering its robust growth in store additions and future revenue, recommend 'Subscribe' with a long-term perspective," it said in an IPO note

"BKIL has reported losses in FY18, FY19, FY20 and H1FY21, the company has negative retained earnings of Rs 462 in H1FY21 which has resulted in erosion of substantial portion of its other equity. The company may incur losses in future as well. However, BKIL’s target to open 700 restaurants by Dec’2026 is the key driver to the business. Besides, the changing lifestyle and the eating habits of the youngest millennial population of India will further drive the revenue of BKIL," said analysts at KR Choksey Institutional Equities in a report.

If the IPO is priced at Rs 60 per share—the top end of the price band— the company will enjoy a market capitalisation of Rs 2,290 crore on a post-diluted basis. The shares are expected to get listed on December 14.