The initial public offering (IPO) will open on December 2, for three days. The price band for the IPO has been set at Rs 59-60 per share. Burger King India Ltd, a quick service restaurant chain, aims to raise Rs 810 crore through fresh issuance of shares worth Rs 450 crore, and an offer for sale of up to 60 million shares by the promoter QSR Asia Pte Ltd worth Rs 360 crore, at the upper end of the price band.
Now, why they raising funds?
Net proceeds from the fresh issue are proposed to be utilised for funding the rollout of new company-owned Burger King Restaurants by way of - repayment or prepayment of outstanding borrowings of the company and for general corporate purposes, the company said in its red herring prospectus. Under the Master Franchise and Development Agreement, the company is required to develop and open at least 700 restaurants by December 31, 2026.
The company has also raised a pre-IPO funding of ₹92 crore from public markets investor Amansa Investments Ltd. Shares were allotted to Amansa at a price of ₹58.5 per share.
Burger King has reserved up to 10 per cent portion of the IPO for retail investors, up to 15 per cent for non-institutional investors and up to 75 per cent for qualified institutional investors. Bids can be made for a minimum of 250 equity shares and in multiples of 250 equity shares thereafter.Equity shares are expected to debut on bourses around December 14, 2020.
Should you invest in it or not? Gaurav Garg, Head of Research, CapitalVia Global Research Limited and Vinit Bolinjkar, Head of Research, Ventura Securities answers that in the podcast
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