Burger King India Ltd IPO aims to raise upto Rs 810 crore

For the first six months of fiscal 2020, Burger King India's sales stood at ₹134.6 crores which are down distinctly by ₹419.3 crores compared to last fiscal.

On Friday, popular fast food joint Burger King India Ltd which is the Indian subsidiary of US-based hamburger has set a price band of ₹59-60 per share for its ₹810 crores Initial Public Offering (IPO) opening on 2 December.

The firm will sell new shares worth ₹450 crores to the public. On the other hand, the promoter entity QSR Asia Pte Ltd, owned by Everstone Group and its limited partners will sell up to 60 million shares at the cost of ₹360 crores. Post the IPO, the promoter will hold 52.9% in the company.

Burger King India said in its outline that it will use the funds to repay existing debt and finance capital expense for new company-owned stores.

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The fast-food chain has raised pre-IPO funding of ₹92 crores from public markets investor Amansa Investments at ₹58.5 per share. Burger King India said it holds a master franchisee arrangement, which provides versatility to tailor its menu to Indian tastes and decide on promotions and costing.

In some states, the IPO has come at a time of the new wave of COVID-19 raising concerns that the government might impose new restrictions. However, most of the Burger King outlets in India are open now.

Rajeev Varman, CEO, Burger King India said that shifting demand from the unorganized sector to organized and easing real estate prices will open up opportunities for the company.

For the first six months of fiscal 2020, the company's sales stood at ₹134.6 crores which are down distinctly by  ₹419.3 crores compared to last fiscal.

Burger King India has 261 restaurants across 57 cities which include Mumbai, Pune, Chennai, Delhi-NCR, Bengaluru, Chandigarh, Ludhiana Hyderabad, Amritsar and others.

This article is published on Good Newwws with an aim to spread positive news from within our country and all around the world to uplift and inspire millions to become more optimistic.