Burger King IPO

Open Date 2nd Dec 2020
Close Date 4th Dec 2020
Price Band Rs. 59 - Rs. 60 per equity share
Lot Size 250 shares
Investment Per Lot Rs. 15,000
Listing at NSE and BSE
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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

Open Date 2nd Dec 2020
Close Date 4th Dec 2020
Allotment Date 9th Dec 2020
Initiation of Refunds 10th Dec 2020
Credit of Shares to Demat Account 11th Dec 2020
Listing Date 14th Dec 2020

Burger King IPO Price

IPO Price Band Rs. 59 - Rs. 60 per equity share
Minimum Investment Amount Rs. 15,000
Maximum Investment Amount Rs. 1,95,000
Face Value 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

  1. Based on the number of restaurants in the last five years, Burger King is one of the fastest-growing international QSR chains in India.
  2. 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.
  3. They have a strong customer proposition and the brand is positioned for millennials.
  4. Vertically managed, scalable supply chain model with good operational quality, a people-centric culture and effective technology systems.
  5. 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.
  6. 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.
  7. 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 the issue.

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Burger King IPO Subscription Breakup

QIBs 75% (101.250 - 102.203mn shares)
Non-Institutional Investors 15% (20.250 - 20.441mn shares)
Retail Individual Investors 10% (13.500 - 13.627mn shares)

Burger King IPO Fundamental Analysis

  1. 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%).
  2. 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%).
  3. 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%.
  4. Revenue as of 31st March 2020 = 846.83 Cr
  5. Net profit as of 31st March 2020 = (-76.57 Cr)
  6. Earnings Per Share (EPS) = (-2.87)
  7. Debt to Equity Ratio (D/E) for FY 20 = 0.71%
  8. Operating Cash Flow = 112.72 Crores

Online Procedure to Apply For Burger King IPO

  1. Go to the IPO Section => IPO Listing => Open IPO.
  2. On tapping Burger King IPO, you can directly click on Subscribe to apply or even view the IPO details.
  3. On the Subscribe Screen/Page, you will be required to enter the number of lots, cut-off price, UPI ID and tap Verify.
  4. Once you select ‘Subscribe’. Your bid will be executed.
  5. You can check the status of your IPO bid in the IPO Transactions section.
Click here to read the entire procedure to apply for the IPO
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Burger King IPO FAQs

Yes, IPO application for Retail Investors is up to 2 Lakhs.
You will have to opt for the ASBA – Application Supported by Blocked Amount facility. Please get in touch with your bank for the same, do check if your bank is in the list of Banks here:
No. Applications made by retail investors using third party UPI ID or by any category of investors using a third party bank account are liable for rejection.
Yes, before the issue closure date. You can do it through Jiffy itself. The blocked amount will be available in 1 working day.
You have to visit the Burger King website to check the allotment status of your subscription to the Burger King IPO.