Burger King IPO

Burger King India has finally received approval from SEBI for going public. Burger King IPO is coming up with an objective to raise funds by ₹450 crores.

According to the draft, the Burger King IPO offer consist of a fresh issue of the equity shares. The value of the IPO aggregates up to ₹450 crores and the offer for sale is up to 6 crores equity shares by the promoter, QSR Asia.

Here is the complete information about this upcoming IPO, but before moving ahead it is good to review the financial performance of the company over the last 2 years.

Review the financial data and performance of the company since 2017.

 

As per the data shown above, the revenue grew from ₹2,282.86 million in Financial Year 2017 to ₹6,285.86 million in 2019.

Also, the revenue from the sale of food and beverages was ₹2,108.87 million in the three months that end in June 2019.

Over the period (in FY 2018 and 2019), the sale grew by 12.23% and 29.2%.

Coming to the gross margin, it grew from ₹1,365.63 million in Fiscal 2017 to ₹4,003.58 million in 2019. The margin reached to ₹1,363.37 million by June 30, 2019.

So overall, the company has shown good growth in terms of revenue and profit. Thus it is coming with a great opportunity for investors who are looking for profitable IPOs.

Let’s dig deeper to review IPO and to know other details.

Burger King IPO India

The company Burger King had filed DRHP with SEBI for an IPO on November 02, 2019, and has received a green signal on January 24, 2020.

Burger King IPO offers the fresh issue of the equity shares of up to ₹450 crore and an offer for sale of up to ₹6 crore equity shares by QSR Asia.

The IPO will open soon, more likely by the month of December 2020.

Know when the subscription date of the IPO is going to open and other related details.

Burger King IPO Details

Burger King got its final approval from SEBI to move ahead to float IPO.

The IPO issue comprises a secondary share sale of ₹600 crores private equity major Everstone Capital and fresh fundraising of ₹450 crores.

 

Initial Public Offering of 135,000,000 shares and of the face value shares of ₹10 each of the company for cash at a price of ₹59-₹60 per equity share is offered.

The minimum bid lot is 250 equity shares and in the multiple of the 250 shares thereafter. The minimum lot size ranges from 1 to 13 thus you can invest in minimum 250 to maximum up to 3250 equity shares at higher price band.

Thus the minimum bid investment ranges from ₹14,750-₹15,000 and the maximum from ₹191,750 to ₹195,000.

Along with this, the company has reserved up to 10% IPO portion for retail investors, 15% for non-institutional investor and up to 75% for the QIBs (Qualified Institutional Investor)

Also review the details of the LIC IPO, and UTI AMC IPO another upcoming IPO in the list.

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Burger King IPO Date

Here is the tentative time table for the upcoming Burger King IPO.

 

We will update you with the same as soon as any new notification comes.

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Burger King IPO Issue Object

The company is coming up with the IPO with the major objects like:

• For getting funds to own Burger King Restaurants
• General Corporate Purposes.

The initial sale is being managed by:

• Kotak Mahindra Capital Company
• CLSA India Pvt Ltd
• Edelweiss Financial Services
• JM Financial

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Burger King IPO Size

With the fresh issue of ₹75,000,000 equity shares aggregating up to ₹450 crores by the company of Burger King and in consultation with the BRLMs is considering a pre-IPO placement of that much number of equity shares that aggregates up to ₹1,500 million before the filing of the Red Herring Prospectus with the RoC.

As the pre-IPO will be completed the number of equity shares will reduce from the fresh issues and subject to the minimum offer size of 10% of the post-offer paid-up equity shares capital of the company that will be offered to the public.

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How To Apply For Burger King IPO?

Initial Public Offerings is one of the ways to buy shares of the company going public.

If you are willing to apply for the Burger King IPO, then go with the complete details of the company and IPO to make the right decision.

To apply for an IPO, you can use your savings to invest or you can borrow money from the banks and other non-financial companies.

The next important thing that is essential to apply for an IPO, is to have a Demat Account.

Having a Demat Account with Zerodha, know how to apply for IPO in Zerodha?

Other than this you can apply for IPO through UPI. Download any of the UPI apps and apply them without any hassle.

You can open a Demat account by submitting your PAN Card, Aadhaar Card, and Address Proof with any of the stockbrokers.

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Interested in opening a Demat Account, fill the details and open it for free. 

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After having a Demat account you can apply for IPO through your trading account or bank account through ASBA (Application Supported by Blocked Amount).

The ASBA is an application that gives authority to the bank to block the money in your account. This can be available in either a physical form or a Demat form.

So for applying for the Burger King IPO India, you only need to specify PAN number, Demat account number, bank account number, and bidding details.

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Burger King IPO Offer Price

The company will determine the IPO issue price after consultation with the lead manager, BRLMs.

It will be done on the basis of an assessment of market demand for the Equity Shares, being provided through the Book Building Process and on the basis of qualitative and quantitative factors.

The face value of the equity shares is ₹ 10 each and the offer price is ₹59-₹60 per shares that is 5.9 to 6 times of its face value of equity shares.

Qualitative Factors

• Operation quality by offering people-centric operating culture plus an effective technology system.
• The strategic development process of restaurants.
• Experienced and passionate management team.
• Manageable and scalable supply chain.
• Strong customer proposition.

Quantitative Factors

Here are the quantitative factors that help in determining the offer price of the IPO.

1. Basic and Diluted Earnings per Share (EPS) at face value of  ₹ 10 each:

 

2. Price/Earning (P/E) ratio [Price Band of  ₹ 59to  ₹ 60 per Equity Share]

 

3. Return on Net Worth (RoNW)

 

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Comparison with the Listed Industry Peers

Peer comparison is widely used for equity analysis of the listed industries.

It is proved to be highly efficient and effective that immediately shows the stock which may be overvalued and which might make good additions to a portfolio.

 

The comparison among the peer industries is done on various basis.

Some of them are explained below.

1. FACE VALUE

Face Value defines the nominal value of the security as stated by an issuer.

When it comes to stocks, the face value defines the original value of the stocks while in bonds it depicts the value that is paid to the holder at maturity.

Here when the Burger King is compared with other Listed industry peers, the face value of the Burger King per share is 10.00 which is equal to Jubilant Foodworks Ltd. and much more than Westlife Development Limited which is ₹2 per share.

 2. TOTAL INCOME FOR the FISCAL YEAR 2019.

Coming back to Burger King the total income for FY 2019 in millions is ₹6441.30.

Other industries in the list Jubilant Foodworks Limited and Westlife Development Limited have an annual income of ₹ 36,105.08 million and ₹14,176.74 respectively.

3. EPS or EARNING PER SHARE

EPS is profit of the company divided by the outstanding shares of the common stock.

The result depicts the profit of the company. Higher the EPS more will be the profit of the company.

Here the two terms basic and diluted EPS comes on screen.

Basic EPS= Net income-Preferred Dividends/Weighted Average No. of Shares of common stock outstanding. 

On the other hand, the diluted EPS does not use the number of shares outstanding but uses the number of possible shares outstanding.

Among all the peer listed industry, the EPS of the Jubilant Foodworks limited is the maximum (₹24.23) while that of Burger King and Westlife Development Company is equal to 1.44 and 2.58 respectively.

4. NAV, Net Asset Value

NAV is the net value of the entity.

NAV= Total Value of the Entity’s Asset-Total Value of Liabilities

In simple terms, it is per share of the fund on a particular date and time.

The value of NAV in ₹ per share for Burger King is the least (9.42)  as compared to other peer industries Jubilant Foodworks Ltd (95.45) and Westlife Development Limited (37.47).

5. P/E ratio or PRICE TO EARNING RATIO

P/E is used to evaluate the current share price relative to the per-share earnings (EPS) of the company.

In the above data, the P/E ratio has been calculated on the basis of the closing market price of the equity shares on NSE on Nov 1, 2019, divided by basic EPS.

6. RONW or RETURN ON NET WORTH RATIO

The last comparison is done on the basis of RoNW (Return on Net Worth Ratio). It is also known as the return on equity ratio.

It is expressed in percentage and is used to calculates the profitability of the company.

To calculate the RONW, divide the net income of the firm with the equity of the shareholder.

Higher the RoNW more is the ability of the company to generate profit without having much capital.

As per the data, Burger King is showing a good percentage of RoNW thus depicting good earnings and hence profit over time.

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Burger King IPO Price Band

Burger King is coming up with the IPO with the face value of each share of ₹ 10.

The cash price of the IPO yet to be disclosed. We will update will all the important details soon.

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Burger King IPO Grey Market Premium

The Burger King IPO Grey Market Premium price on 27 November 2020 is ₹20-₹25, the Kostak rate is ₹ 5500 and the Subject to Sauda is N/A

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Burger King IPO Promoters

The Burger King IPO promoters are QSR Asia Pvt Ltd.

QSR Asia holds 10,000,000 CCPS (Compulsory Convertible Preference Shares)which are outstanding.

This outstanding CCPS will be converted into Equity shares on or before filing the Red Herring Prospectus with RoC.

The pre-offer shareholding of promoter and promoter group is here in the table below.

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Burger King IPO Subscription

The subscription status of Burger King IPO on Day 1 i.e on 02 December 2020 would be updated at 17.00 IST.

 

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Burger King IPO Allotment Status

The allotment of Burger King shares will begin once the IPO closes.

The allotment status is not known but will update you with it soon.

Once activated you can check Burger King IPO Allotment Status here.

Keep visiting our website to know the basics of IPO allotment finalization, initiation of refunds, when the shares of the Demat share, and the listing date.

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Burger King IPO Review & Ratings

The review of Burger King IPO is being given by the stock brokers. 

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Burger King IPO Registrar

The registrar to the Issue of the Burger King IPO is Link In-time India Pvt Ltd.

Here is the complete detail of the registrar

Address:

C-101, First Floor,
247  Park,
Lal Bahadur Shastri Marg,
Vikhroli (West) Mumbai,
Maharashtra 400 083

Contact:

Phone- +91-22 49186200
Email: burgerking.ipo@linkintime.co.in
Investor Grievance Email: burgerking.ipo@linkintime.co.in
Contact Person: Shanti Gopalkrishnan

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Burger King Company Details

Here is more review and detail of the company that would help you to decide whether or not to subscribe to its IPO.

Burger King is one of the fastest-growing QSR (Quick Service Restaurant) chains in India.

The first restaurant was opened in November 2014 and is growing at a rapid rate since then.

This all is because of the implementation of the perfect strategy like well-defined restaurant roll-out, the development process of the company, and lots more.

By June 30, 2019, it was able to open 202 restaurants. The number includes 7 sub-franchised Burger King Restaurants across 16 states and Union Territories and 47 cities across India.

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Burger King IPO: If You Should Invest

Burger King always adopts great business strategies that help it to expand its portfolio continuously, in enhancing productivity & operational efficiencies.

Also, the company optimizes the value of its asset portfolio through an efficient capital structure.

No wonder, Burger King IPO is bringing great benefits but the company has some associated risks that might hamper its financial growth:

• Increasing the health concern of people related to food-borne illness could have a material adverse effect, eventually affecting the operational and financial condition of the company.
• Deterioration in performance or relationships with a third party may affect the business.
• The company had negative cash flows from operating and financing activities in the last 3 years and 3 months that ended on June 30, 2019, and so the company may face the negative cash flow in the future as well.
• An economic slowdown in the country could cause our business to suffer.
• QIBs or non-institutional investors are not permitted to withdraw or reduce the value of their bids at any stage after submission.
• The percentage of ownership of the investor may dilute in the future.

In all, the Burger King India IPO turns out to be the savior for India’s Primary Market which remained subdued with just 13 listings so far.

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