Burger King IPO Review

Burger King IPO Review – Subscribe for Burger King IPO in India. Burger King is the India’s fastest growing quick service restaurant chains. It is the second largest fast food burger brand with having 216 Burger-King restaurants and 8 Sub-Franchised Burger King restaurants. It has an exclusive right to establish, develop, and operate Burger King branded restaurants in India. It aims to cater to the Indian tastes and preferences through adding new food offerings to its product portfolio. Company establishes its branches in high traffic areas in key metropolitan areas and cities across the country.

The public issue consists of a fresh issue of Rs 450 crore and an offer for sale of 6 crore equity shares by promoter QSR Asia.

IPO Price Band

The company in consultation with merchant bankers has fixed IPO price band at Rs 59-60 per share, which is 5.9-6 times of its face value of equity shares.

Total Fund Raising

Burger King targets to raise Rs 804 crore at lower price band and Rs 810 crore at higher price band.

Objects of Issue

The company will utilize net fresh issue proceeds for funding roll out of owned Burger King Restaurants by way of repayment or prepayment of outstanding borrowings obtained for setting up of new owned Burger King Restaurants (Rs 165 crore) and capital expenditure incurred for setting up of new owned Burger King Restaurants (Rs 177 crore), and general corporate purposes.

But company will not receive any proceeds from the offer for sale. All the money will go to promoter selling shareholder.

Company Profile

As the national master franchisee of the BURGER KING brand in India, Burger King India has exclusive rights to develop, establish, operate and franchise Burger King branded restaurants in India.

Founded in 1954 in the United States, the Burger King brand (also known as the ‘HOME OF THE WHOPPER’) is owned by Burger King Corporation, a subsidiary of Restaurant Brands International Inc, which holds a portfolio of fast food brands – BURGER KING, POPEYES and TIM HORTONS. The Burger King brand is the second largest fast food burger brand globally as measured by the total number of restaurants, with a global network of 18,675 restaurants in more than 100 countries and US territories as at September 2020.

Burger King India is one of the fastest growing QSR brands to reach 200 restaurants among international QSR brands in India during the first five years of operations.

As of November 25, Company had 259 its owned Burger King restaurants and nine sub-franchised Burger King restaurants, of which 249 were operational, including two sub-franchised restaurants.

Also Read – Burger King IPO Review

Key Strengths

Burger King believes following competitive strengths will enable it to continue growing business while delivering value to shareholders:

a) Exclusive national master franchise rights in India;
b) Strong customer proposition;
c) Brand positioned for millennial;
d) Vertically managed and scalable supply chain
e) Operational quality, a people-centric operating culture and effective technology systems;
f) Well defined restaurant roll out and development process;

G) Experienced, passionate and professional management team.

Shivakumar Pullaya Dega is the Chairman and Independent Director of the company, while Rajeev Varman is the Chief Executive Officer and Whole Time Director.

How to apply for Burger King India Limited IPO :

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How will I receive the Burger King IPOs?

The finalization of IPO allotment will happen on December 9, and after that, you can check IPO allotment status on the registrar’s website. If you receive Burger King IPOs, it will get credited to your Demat account directly.

How to pay for Burger King IPO using UPI?

While applying through your broker, you will need to make the payment for the bid using UPI handle. To make UPI payment, register with Bheem or Google Pay. At the final stage of placing the bid, you will have to enter your UPI handle to make payment. You will receive a payment request on Bheem or Google Pay and need to approve it to complete the process.