Burger King India Fancies the Investors- IPO Oversubscribed by 155x
Burger King IPO closed for subscription today on 4th Dec 2020. The Issue continued to attract investors on the last day and has been oversubscribed by 155x. Burger King IPO received 84.34 times bids from QIB, 354.08 times bids from NIIs and 67.19 times bids from retail category. The company has already raised Rs 364.5 crore from anchor investors on 1st Dec 2020. The issue has received bids for 1155 crore equity shares against the IPO size of 7.45 crore equity shares as per the information available with Stock exchanges. Following factors worked in favour of Burger King:
- Increasing trend in revenue from operations seen on YoY basis.
- National master franchisee arrangement which allows using Burger King’s globally recognised brand name.
- Quality and brand positioning.
Burger King is the fastest growing QSR chains in India and aims to reach 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. CAGR of 23 % is expected from the QSR market till FY 2025. (For Valuations pls refer Full analysis Burger King IPO- Details, Review Analysis)
Burger King’s NAV is Rs 7.62 against the face value of Rs 10. P/BV is 7.87 calculated at upper band issue price of Rs 60.s However, its established peer like Jubiliant Food commands very high valuations i.e P/E @ 255.71 and P/BV @ 27.86. The industry P/E is 71.03.rger King IPO Subscription Status- Is it worth
Discounted valuation relative to its peers like Jubiliant (Dominos) and Westlife (Mc D). This coupled with the growth phase of the industry and the issuer played a driving factor for the investors to subscribe to the IPO. Listing gains cannot be ruled out looking at the subscription numbers.
The Burger King IPO GMP has been trading around 40-50% at Rs 25-30 and has zoomed to Rs 35 on 4th Dec 2020.
|Subscription Status (no. of times,x)|
|Particulars||Number of Shares Offered||2nd Dec 2020||3rd Dec 2020||4th Dec 2020|
Burger King IPO Important dates
|Burger King IPO Allotment and Listing|
|Basis of Allotment||9th Dec 2020|
|Refunds||10th Dec 2020|
|Credit to Demat Account||11th Dec 2020|
|Listing Date||14th Dec 2020|
ICICI Direct, Angel Broking, Choice Equity Broking, Geojit Capital, Capital Market and KR Choksey had given a subscribe to the IPO.