Burger King’s market cap jumped 365% in just four days of listing

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Mumbai: Burger King investors are getting the good news one after the other. The shares of the company have continued to grow rapidly since the listing. With this, the company’s market cap has reached four times in just four days.

The market cap of Burger King India has exceeded rival company Westlife Development. Westlife Development operates McDonald’s Restaurants in South and West India.

On Thursday too Burger King shares saw a sharp rise. As soon as the market opened, the share price jumped by 10 percent to Rs 219.15. The company sold shares in the IPO to investors at the rate of Rs 60. The share price has increased by 365 per cent over the issue price.

Burger King India’s market cap rose to Rs 8,364 crore after the stock market opened on Thursday. Westlife’s market cap is around Rs 7,327 crore. Significantly, in 2013, Westlife bought the business from Hardcastle Restaurant.

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Analysts are cautioning investors against such ‘wild booming’ in shares of small companies like Burger King. Burger King’s IPO had received a subscription of 156.7 times. From Monday to Thursday, there is an upper circuit in the company’s shares every day.

The impact of the rise in Burger King shares has also been seen in other Quick Service Restaurant (QSR). Shares of Westwife Development gained 12.2 per cent to Rs 469.50 on Wednesday, while Jubilant Foodworks shares rose 3.6 per cent to Rs 2,675.20.

IIFL Securities Director Sanjeev Bhasin said, “There is a kind of madness in the market and many investors are afraid of being left behind. Midcap stocks are seeing very good growth. Expensive valuations are being ignored.” ”

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