2020 has been a year of IPOs and of the 12 IPOs so far this year, 11 have delivered positive returns. So it’s obvious why investors are so keen to invest in IPOs. The final month of the year is expected to be action-packed with as many as 7 IPOs hitting the street in December!
The first of them is the Burger King IPO which will remain open for subscription from 2 to 4 December 2020. The company plans to use the funds from the ₹810-crore issue to open new company-owned Burger King restaurants and for general corporate purposes. We tell you all you need to know about this IPO.
Issue opens: 2 December 2020
Issue closes: 4 December 2020
Issue price: ₹59–60 per share
IPO size: ₹810 crore
Lot size: 250 shares
Burger King India Limited is one of the fastest-growing international quick-service restaurant brands in India to reach 200 restaurants during the first 5 years of operations. Currently, the company has over 260 restaurants, including 8 sub-franchised restaurants, across India. It is the national master franchisee of the Burger King brand in India, which is the second-largest fast-food burger brand globally based on the total number of restaurants. As per its master franchise and development agreement, it is required to develop and open at least 700 restaurants by December 2026.
The IPO consists of a fresh issue of ₹450 crore and an offer for sale of 6 crore equity shares by promoter QSR Asia Pte Ltd. The company has fixed the IPO price band at ₹59–60 per share of face value of ₹10 per share. The company aims to raise ₹810 crore from the public issue at the higher end of the price band.
The lot size is 25 shares, which means that bids can be placed for a minimum of 250 equity shares and in multiples of 250 equity shares thereafter. The company has reserved up to 10% of the IPO for retail investors, up to 15% for non-institutional investors, and up to 75% for qualified institutional investors.
The company plans to use the funds to roll-out new company-owned Burger King restaurants and for general corporate purposes.
We hope you found the above information useful. In case you wish to apply for this IPO on Upstox, click here.
Happy investing!