Burger King IPO
Burger King brings IPO to raise ₹810 crores with a fresh issue of ₹450 crores and an offer for sale of ₹360 crores with a price band of ₹ 59 to ₹ 60 per equity share. The IPO opens on Dec 2, 2020, and closes on Dec 4, 2020.
Company Overview
Burger King is also known as “Home of the Whopper®” was founded in 1954 in the United States is owned by Burger King Corporation, a subsidiary of Restaurants Brand International Inc. It is the 2nd largest fast-food hamburger chain in the world with about 18,675 restaurants operating in more than 100 countries and the United States territories. It came to India in 2013 and started operations in 2014. Today it has 202 restaurants spread all over the country. Its famous brands Burger King, Popeyes, and Tim Hortons are recognized all over the world.
Burger King comes under Quick Service Restaurants Category (QSR). QSR increasing for the last few years due to the craze for fast foods and an increasing number of young populations in India.
Company’s Strengths
- Exclusive national master franchise rights in India
- Strong customer proposition
- Brand positioned for millennials
- Vertically managed and scalable supply chain
- Operational quality, a people-centric operating culture, and effective technology systems
- Well defined restaurant roll out and development process
- Experienced, passionate, and professional management team
Objectives of the Issue
- Funding roll out of new Company-Owned Burger King Restaurants
- Repayment or pre-payment of its outstanding borrowings.
- General Corporate purposes
Financials of Burger King (up to 31-Mar-2020)
Burger King’s revenue has increased by 261% in the last 3 years but its expenses also increased and the business is making losses for the past 3 years.
| Particulars/ as on | FY17 | FY18 | FY19 | FY20 |
| Total Revenue | ₹ 234 cr | ₹ 388 cr | ₹ 644 cr | ₹ 846 cr |
| Losses | ₹ 71 cr | ₹ 82 cr | ₹ 38 cr | ₹ 76.5 cr |
Comparison with Listed Peers
The only direct competitor of Burger King is McDonald’s. However, if we compare the number of outlets in the QSR segment, Domino’s pizza is leading with 1249 outlets, McDonald’s with 470 outlets, and Burger King with 202 outlets. The market share of Domino’s Pizza is 19%, McDonald’s is 7% and Burger King is 3% in terms of the no. of outlets in the QSR segment.
Burger King IPO Issue Details
| Issue Open | December 2, 2020- December 4, 2020 |
| Issue Type | Book Built Issue IPO |
| Issue Size | 135,000,000 equity shares of ₹ 10 (aggregating up to ₹ 810.00 cr) |
| Fresh Issue | 75,000,000 equity shares of ₹ 10 (aggregating up to ₹ 450.00 cr) |
| Offer for Sale | 60,000,000 equity shares of ₹ 10 (aggregating up to ₹ 360.00 cr) |
| Face Value | ₹ 10 per equity share |
| Issue Price | ₹ 59 to ₹ 60 per equity share |
| Market Lot | 250 shares |
| Min Order Quantity | 250 shares |
| Listing At | BSE, NSE |
Burger King Bid Details
| Sl No. | Category | Shares Offered/ Reserved | Subscription Status (No. of times) | ||
| 02 Dec 20 (Day 1) | 03 Dec 20 (Day 2) | 04 Dec 20 (Day 3) | |||
| 1. | QIB | 4,04,23,729 | 0.17 | 2.70 | 86.64 |
| 2. | NII | 2,04,40,677 | 0.71 | 3.61 | 354.11 |
| 3. | RII | 1,36,27,118 | 15.54 | 37.84 | 68.15 |
| Total | 7,44,91,524 | 3.13 | 9.38 | 156.65 | |
Burger King IPO Lot Size and Price for RII
| Application | Lots | Shares | Amount (Cut-off) |
| Minimum | 1 | 250 | ₹15,000 |
| Maximum | 13 | 3250 | ₹195,000 |
| Book Running Lead Managers to the Offer |
| 1. Kotak Mahindra Capital Company Limited |
| 2. CLSA India Private Limited |
| 3. Edelweiss Financial Services Limited |
| 4. JM Financial Limited |
| Registrar to the Offer |
| Link Intime India Private Limited |
C-101, 1st Floor, 247 Park, Lal Bahadur Shastri Marg Vikhroli (West) |
Registered and Corporate Office: Unit Nos.1003 to 1007, 10th Floor, Mittal Commercia, Asan Pada Rd, Chimatpada, Marol, Andheri (E), Mumbai, Maharashtra, 400 059; Tel: +91 22 7193 3047 |
Also See: