Restaurant Brands Asia falls on reports of Everstone Capital's likely exit

Everstone Capital may sell its entire 11.26 per cent stake in Restaurant Brands Asia, Reuters reported

Restaurant Brands Asia share price today

Restaurant Brands Asia share price fell nearly 5 per cent on Tuesday after news report said that private equity firm Everstone Capital will likely exit the company. The scrip fell as much as 5.9 per cent to ₹62.91, its lowest level since January 1 on the National Stock Exchange (NSE).

 

In Tuesday’s session, Restaurant Brands Asia saw a trade of 13.05 million shares. The scrip ended 5.07 per cent down at ₹63.45, as compared to 1.38 per cent decline in the Nifty 50 index. 

 

Why did Restaurant Brands Asia share price fall today?

Restaurant Brands Asia share price declined on Tuesday after a news report said that Everstone Capital is planning to exit the company. The private equity firm will likely offload its entire 11.26 per cent stake in the Burger King operator, Reuters reported.

 

 

According to Reuters, Everstone Capital is exiting both Burger King's India and Indonesia franchisee Restaurant Brands Asia. The deal may get announced on Tuesday, the new agency said citing sources.

 

Everstone Capital holds stakes in Restaurant Brands Asia through QSR Asia Pte Ltd. The private equity firm’s investment in the Burger King operator is estimated to be valued at $57 million, according to the report. 

 

Restaurant Brands Asia had a market capitalisation of ₹3,747.65 crore, according to the data on National Stock Exchange (NSE). 

 

Restaurant Brands Asia will get a strategic investor post the exit. According to Reuters. The Burger King Operator will likely get a boost of ₹800 crore through the strategic investment.  

Technical view: Restaurant Brands Asia is struggling to generate fresh momentum

Restaurant Brands Asia is expected to remain in a consolidation phase in the short term, with strong support placed near ₹61 and immediate resistance around ₹70, said Jigar S. Patel, senior manager, equity technical research at Anand Rathi Share and Stock Brokers.

 

The stock has been struggling to generate fresh momentum, and a decisive breakout above the ₹70 mark is required to open the doors for a further upside towards ₹74. Until such a breakout is confirmed, upside may remain capped. On the downside, ₹61 will continue to act as a critical support zone, and any sustained breach below this level could weaken the structure further, he said

 

Technically, even on the weekly timeframe, both Directional Movement Index (DMI) and Average Directional Index (ADX) remain below the 25 mark, highlighting the absence of a strong trend. This low ADX reading clearly points towards a sideways, range-bound environment. Overall, Restaurant Brands Asia is expected to trade within the ₹61–₹74 range, with consolidation likely to dominate in the near term, Patel added. 

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