Quick service restaurant chain Burger King is looking to raise ~₹ 810 crores through capital markets.
Burger King Ltd, promoted by QSR Asia Pte. Ltd is currently operating 261 restaurants including 8 Sub-Franchised Burger King restaurants across 17 states and union territories and 57 cities across India.
During FY20, Burger King generated 66.7% revenues from USA, 17.7% revenues from India and balance from rest of the world
IPO issue would start for subscription on 2-dec-20 till 4-Dec-20 with price band of ₹ 59 to ₹ 60 per share.
Burger King opened its first outlet in 2014 and since then expanded across India. As the national master franchisee of the BURGER KING® brand in India, company has exclusive rights to develop, establish, operate and franchise Burger King branded restaurants in India. Through this IPO, Mumbai based Quick Service Restaurant (QSR) company is looking to raise ₹ 810 Crores primarily for 1) Repayment or prepayment of outstanding borrowings of the Company obtained for setting up of new Company-owned Burger King Restaurants; 2) Capital expenditure incurred for setting up of new Company-owned Burger King Restaurants; and 3) General corporate purposes.
As on Sep'20, Burger King is operating 261 restaurants including 8 Sub-Franchised Burger King restaurants across 17 states and union territories and 57 cities across India. Till Oct-Nov'20 operates 259 Company-owned Burger King Restaurants and nine Sub-Franchised Burger King Restaurants, of which 249 were operational, including two Sub-Franchised Burger King Restaurant.
Promoters of Burger King is QSR Asia Pte. Ltd.
Revenue from sale of food and beverages grew from ₹3,752.00 million in Fiscal 2018 to ₹8,353.23 million in Fiscal 2020. However, the COVID-19 crisis has had a significant impact on results of operations at the end of Fiscal 2020 and in the six months ended September 30, 2020, resulting in a decrease of revenue from sale of food and beverages to ₹1,346.93 million in the six months ended September 30, 2020, compared to ₹4,193.70 million in the six months ended September 30, 2019. In addition, although same-store sales grew at 29.21% in Fiscal 2019 and 6.11% in the nine months ended December 31, 2019, same-store sales decreased by 0.30% in Fiscal 2020 and by 56.9% in the six months ended September 30, 2020 primarily due to the impact of the COVID-19 crisis. Gross margin grew from ₹2,322.07 million in Fiscal 2018 to ₹5,367.97 million in Fiscal 2020 and decreased to ₹859.53 million in the six months ended September 30, 2020 compared to ₹2,699.42 million in the six months ended September 30, 2019.
Key Pointers
- Exclusive national master franchise rights in India
- Vertically managed and scalable supply chain
- Strong customer proposition
- Brand positioned for millennial.
- Operational quality, a people-centric operating culture and effective technology systems
Key Management
| Shivakumar Pullaya Dega | Chairman |
| Rajeev Varman | CEO |
| Sumit P. Zaveri | CFO |
| Abhishek Gupta | Chief of Business Development and Operations Support Officer |
| Namrata Tiwari | Chief People Officer |
| Madhulika Rawat | CS & Compliance Officer |
Burger King IPO Snapshot
| Issue Open | 2-Dec-2020 |
| Issue Close | 4-Dec-2020 |
| Face Value | ₹ 10/- |
| Price Band | ₹ 59 to ₹ 60 (Including premium of ₹ 49 to ₹ 50 per share) |
| Discount | Nil |
| Bid Lot | 250 shares and in mutiples |
| Listing on | BSE and NSE |
| Mode of Payment | UPI / ASBA (Mandatory); Applications using third party UPI/ASBA Bank accounts are liable to rejected |
Burger King Issue & Subscribed Details
| Particulars | Issued | Subscribed |
|---|---|---|
| Issue Size | ₹ 810 Crores (Upper Band) | ₹ - Crores |
| QIB Portion | ~50% | 86.48 times |
| NII Portion (Application for lot size of 15 & above) | ~15% | 357.45 times |
| Retail Portion (Applications for lot size between 1 & upto 15) | ~35% | 68.79 times |
| Employees Portion | NA | NA |
| Total | 100% | 157.16 times |
Burger King IPO Indicative Dates
| Issue Open | 2-Dec-2020 |
| Issue Close | 4-Dec-2020 |
| Anchor Investor Bidding | One working day prior to Issue opening date 6-Nov-2020 |
| Announcement of Allotment | 10-Dec-2020 |
| Initiation of Refunds | 11-Dec-2020 |
| Credit of Shares | 12-Dec-2020 |
| Listing | 14-Dec-2020 |
Lead Managers of Burger King IPO
List of Book Running and Lead/Co-Lead Manager/s
| Kotak Mahindra Capital Company Ltd. |
| CLSA India Private Limited |
| Edelweiss Financial Services Limited |
| JM Financial Limited |
Registrar of Burger King IPO
| Link Intime India Private Limited |
Valuation
Company is looking at the following valuation
| Issue Size | ₹ 810 Crores (Upper Band |
| Pre-Issue Promoter's Holding | 94.34% |
| Post Issue Promoter's Holding | 60.8% |
| Pre-Issue Shares | ₹ 306.65 Crores |
| Post Issue Shares | ₹ 381.65 Crores |
| Post Issue Market Cap (based on Price band) | ₹ 2,259 to ₹ 2,290 Crores |
Address of Burger King IPO
| Name | Burger King India Ltd. |
| Corporate Identity Number | U55204MH2013FLC249986 |
| Contact Person | Madhulika Rawat, Company Secretary and Compliance Officer |
| Registered and Corporate Office | Unit No. 1003 to 1007, 10th floor, Mittal Commercia, Asan Pada Rd, Chimatpada, Marol, Andheri East, Mumbai - 400059, Tel: +91-22-71933047 |
| Website | www.burgerkingindia.in |
| investor@burgerking.in |
Check Allotment Status of Burger King IPO
| Please check below or visit here to check allotment status of Burger King IPO |
Frequently Asked Questions (FAQ)
| Q. How to Apply for IPO ? A. IPO can be applied Online and Offline mode. Online: a) Via Net banking of Bank website b) Via Stock brokers portal Offline: a) Collect application forms from Brokers > Fill demat details & UPI > Submit to any broker across India. b) Download forms from NSE/BSE website > Fill demat details & UPI > Submit to any broker across India. |
| Q. How to register for BHIM UPI? UPI is made mandatory by SEBI to apply for IPO's. To educate investors National Payment Corporation of India (NPCI) has come out with the useful video. This video educates on how to download BHIM UPI app and its process to register. Source: NPCI |
| What is UPI based ASBA Process ? To educate people to apply for IPO's National Payment Corporation of India (NPCI) has come out with the useful video. This video educates consumers on how the IPO process works and how subscribing for IPOs via BHIM UPI helps reduce the time and effort one needs to take for the same. Source: NPCI |
| Q3? Ans Source: NPCI |
0 Comments