Burger King IPO Details
Burger King India Ltd. (Burger King), is a quick-service restaurant (QSR) chain. It was founded in 1954 in
the U.S. and is owned by the Burger King Corporation. As of 30th Sept. 2020, the Burger King brand is the
second-largest fast-food burger brand globally (based on the number of restaurants), with a global network of
18,675 restaurants in more than 100 countries and the U.S. territories. The Indian Franchise received the
green flag by SEBI in January to go ahead with the initial public offering.
- The issue is a combination of fresh (Rs. 4,500mn) and OFS (Rs. 8,040 - 8,100mn).
- The company will not receive any proceeds from the OFS portion.
- Of the net proceeds from the fresh issue, Rs. 1,650mn will be utilized for the repayment/prepayment of
outstanding debt; Rs. 1,770mn will be used by the company for restaurant expansion.
Burger King IPO Dates
||2nd Dec 2020
||4th Dec 2020
||9th Dec 2020
|Initiation of Refunds
||10th Dec 2020
|Credit of Shares to Demat Account
||11th Dec 2020
||14th Dec 2020
Burger King IPO Price
|IPO Price Band
||Rs. 59 - Rs. 60 per equity share
|Minimum Investment Amount
|Maximum Investment Amount
||Rs. 10 per equity share
Burger King IPO Lot Size
|Minimum Lot Size
||1 (250 shares)
|Maximum Lot Size
||13 (3250 shares)
Burger King IPO Review/Ratings
Based on the number of restaurants in the last five years, Burger King is one of the fastest-growing
international QSR chains in India.
At the higher price band of Rs. 60 per share, Burger King’s share is valued at an EV/sales multiple of 5.2x,
which is at a discount to the peer average of 8.9x.
They have a strong customer proposition and the brand is positioned for millennials.
Vertically managed, scalable supply chain model with good operational quality, a people-centric culture and
effective technology systems.
Key concern is regarding the continuing of the COVID-19 crisis and an adverse effect on liquidity as well as
unfavourable change in consumer preferences.
The organized QSR sub-segment was estimated at Rs. 348bn in FY20 and is projected to grow at 19% CAGR to Rs.
825bn by FY25. Growth in the QSR sub-segment is expected to be driven by the chain QSR market, which was
approximately 54% of the total QSR sub-segment in FY20 and is estimated to be approximately 64% of the total
QSR sub-segment by FY25.
- The company is in the growth phase and has scheduled an aggressive restaurant expansion plan. Considering
COVID-19 as an exceptional phase for the sector and keeping in mind the positive advancement in vaccine
development and considerable relaxation in the economic activities; it is expected to report improved
financials over the period. Thus considering the discounted valuations, we assign a “SUBSCRIBE” rating for
Burger King IPO Report
Burger King IPO Subscription Breakup
||75% (101.250 - 102.203mn shares)
||15% (20.250 - 20.441mn shares)
|Retail Individual Investors
||10% (13.500 - 13.627mn shares)
Burger King IPO Fundamental Analysis
In terms of the number of outlets (FY20): Domino’s Pizza has a market share of 19%, followed by Subway (8%),
McDonald’s (7%), KFC (6%) and Burger King (4%).
In terms of revenue, Domino’s Pizza has a market share of 21% followed by McDonald’s (11%), KFC (10%),
Subway (6%) and Burger King (5%).
Promoter holds 94.34% stake in the company and post-IPO this will come down to 60.08%. Public holding will
increase from the current 5.66% to 39.92%.
Revenue as of 31st March 2020 = 846.83 Cr
Net profit as of 31st March 2020 = (-76.57 Cr)
Earnings Per Share (EPS) = (-2.87)
- Debt to Equity Ratio (D/E) for FY 20 = 0.71%
- Operating Cash Flow = 112.72 Crores
Online Procedure to Apply For Burger King IPO
Click here to read the entire procedure to apply for the IPO
Apply for the Burger King IPO with Jiffy
- Go to the IPO Section => IPO Listing => Open IPO.
- On tapping Burger King IPO, you can directly click on Subscribe to apply or even view the IPO details.
- On the Subscribe Screen/Page, you will be required to enter the number of lots, cut-off price, UPI ID and
- Once you select ‘Subscribe’. Your bid will be executed.
- You can check the status of your IPO bid in the IPO Transactions section.