Burger King IPO Subscription Status- Is it worth Investing?

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Burger King IPO Subscription Status- Is it worth Investing?

Burger King IPO has received huge response from the Retail Category and has been subscribed by 37.80 x (retail category)so far on Day 2 (3rd Dec 2020). The company has already raised Rs 364.5 crore from anchor investors on 1st Dec 2020. The issue has received bids for 23.32 crore equity shares against the IPO size of 7.45 crore equity shares as per the information available. For Final subscription status pls click on BurgerKing IPO Subscription Status

Burger King is the fastest growing QSR chains in India and aims to develop 700 restaurants by Dec 2026. BK would be in a growth momentum for the next couple of years and we might see improved valuations as it break evens. The QSR segment has a potential to capitalise on growing opportunity as India is an underpenetrated market for QSRs. CAGR of 23 % is expected from the QSR market till FY 2025. (For Valuations pls refer Full analysis Burger King IPO- Details, Review Analysis)

Is it worth Investing? Burger King IPO Subscription Status- Is it worth Investing?

The Issue  would close on 4th Dec 2020 and is relatively cheaper when compared to Jubiliant (Dominos) and Westlife (Mc D). Though the company is in net losses but its revenue continues to grow at a CAGR of 50% due to expansion.

The Burger King IPO GMP has been trading around 40-50% at Rs 25-30 and has been oversubscribed 9x on Day 2. One may expect listing gains as well as subscribe for long term returns.

Subscription Status

Subscription Status (no. of times,x)    
ParticularsNumber of Shares Offered2nd Dec 20203rd Dec 20204th Dec 2020
QIB4.04 crore0.16x2.71x84.34x
NII2.05 crore0.70x3.60x354.08x
Retail1.36 crore15.54x37.8067.19x
Total7.45 crore3.13x9.37x155.22x

 

Burger King IPO Lot size and Important dates

Burger King IPO Allotment and Listing 
Basis of Allotment9th Dec 2020
Refunds10th Dec 2020
Credit to Demat Account11th Dec 2020
Listing Date14th Dec 2020

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About CA Priyanka Choudhary Jain 99 Articles
Chartered Accountant & an experienced credit analyst. She has worked with CRISIL as a Senior Credit Analyst on rating assignments including business & financial analysis in Corporates as well as the Public Finance Sector. Please mail your queries, feedback, and any suggestions to her on info.financepost@gmail.com

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