Burger King India’s final Initial Public Offering bidding on Friday witnessed strong investment via investors from various categories as it got subscribed more than 157.41 times till 5 pm today. This makes it 2020’s second most subscribed IPO after Mazagon Dock Shipbuilders.
The IPO worth Rs 810 crores, received bids amounting to 11.67 billion against 74.49 million issued shares, data from NSE website suggests. The high-net-worth segment was the most subscribed portion followed by qualified institutional buyers and retail investors. Reserve segment for retail investors was oversubscribed 67.54 times while the portion which was set aside for qualified institutional investors was subscribed about 86.64 times and that of high net-worth investors was oversubscribed 354.11 times.
The company will receive Rs 450 crore via the IPO and it plans to utilize the money to repay its debt and for expansion purposes. Existing shareholders and private equity firm Everstone and its co-investors will receive Rs 360 crore from the IPO earnings.
“Keeping the risks in mind, we advise investors to subscribe for listing gains only for now. Further improvement in bottom-line, reduction of debt and same-store sales growth should be analysed in the following quarters to take a long-term call”, said Nirali Shah, Senior Research Analyst, Samco Securities.
The IPO allotment will be announced on 9 December and the listing on December 14. Investment banks Kotak Mahindra Capital, Edelweiss, CLSA and JM Financial had advised Burger King India on its IPO.