Great response to Burger King IPO, subscribed 4.4 times till noon on second day

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new Delhi : Burger King’s IPO has received a great response from investors. On the second day of opening (till 11:30 pm), the issue was subscribed 4.4 times. The company is selling 7,44,91,524 shares in this issue. This issue was opened on Wednesday. On the first day it was subscribed 3.3 times.

Retail investors have shown great interest in this issue. The category reserved for retail investors has been subscribed 15.5 times. The QIB category is subscribed 16 per cent and the HNI category 70 per cent. The company will issue new shares worth Rs 450 crore in this IPO. 6 crore shares will be issued under OFS, which will be worth about Rs 360 crore.

Read also:
Should you invest in a Burger King IPO?

The company has fixed a price band of Rs 59-60 per share for the IPO. Retail investors will have to bid for at least one lot in this stock. A lot contains 250 shares. In this way the retail investor will have to invest at least Rs 15,000. A retail investor can bid for a maximum of 3,250 shares.

How is business?

The company started functioning in the year 2013. Only Burger King India has the right to start and run Burger King restaurants in the country. It is included in the fast growing Quick Service Restaurant (QSR) in the country. The company opened the first restaurant in 2014. By the end of September 2020, it had 261 restaurants.

The company wants to increase the number of restaurants to 370 by the year 2022 and to 700 by the year 2026. The company’s restaurants are mainly seen in four main areas. This includes large spaces, more visible areas, shopping malls and food courts.

During the financial year 2015-16 to FY 2019-20, the company’s revenue grew at a rate of 56 per cent annually to Rs 841 crore. During this period, revenues of listed company’s rival Jubilant Foodworks and Westlife Development grew at 12 per cent and 17 per cent respectively.

In four years, Burger King outlets have grown at a rate of 85 per cent, while the growth of rivals has been less than 10 per cent. Its gross margin is 64 percent, which is more or less equal to Westlife. The company hopes to improve it.

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