Burger King sets IPO price band at Rs 59-60, seeks to raise Rs 450 cr

Proceeds will be used to roll out new outlets, retire debt; Issuer to have market cap of Rs 2,290 cr at upper end of price band

Quick service restaurant (QSR) Burger King India has set the price band for its IPO at Rs 59-60 per share. The popular burger chain is looking to raise Rs 450 crore from its maiden offering to be used to roll out new outlets and retire debt. The IPO will also comprise of secondary share sale worth Rs 360 crore. At the top-end of the price band, Burger King will have market capitalisation of Rs 2,290 crore.

The company competes international QSR chains such as McDonalds, KFC, Domino’s Pizza, Subway and Pizza Hut. The organized QSR market is estimated at Rs 35,000 crore. It is projected to grow at annualized rate of 19 per cent to Rs 82,500 crore over the next five years. In financial year 2019-20, the company had reported revenues from operations of Rs 841 crore and a loss of Rs 77.6 crore. It losses had widened during the first six months of 2020-21 to Rs 119 crore from Rs 17.4 crore during the same period last year. Revenues from operations shrunk to Rs 135 crore from Rs 422 crore. This was on account of the covid-19 pandemic

 

“By the end of March 2020,201 of our restaurants had closed their operations temporarily due to the Covid-19 lockdown in India, meaning only 59 of our restaurants remained operational as of March 31, 2020. From April 1, 2020 to June 30, 2020, 130 restaurants had reopened for operations over the course of the period for either dine-in or food delivery, with a further 37 restaurants reopening between July 1, 2020 and September 30, 2020, meaning we had a total of 226 operational restaurants as of September 30, 2020,” the company has said in its offer document.

Burger King currently operates about 270 outlets. It aims to scale it up to 700 outlets by 2026.

Burger King’s IPO will remain open between December 2 and 4.