Private equity firm Everstone Group promoted Burger King India Ltd on Friday set the price band at ₹59-60 per share for its initial public offering (IPO). Burger King IPO is all set to open on December 2.
The proposed IPO will see the company raise ₹810 crore, comprising a fresh issue of shares amounting to ₹450 crore, while the promoter entity QSR Asia Pte Ltd will sell up to 60 million shares, aggregating to ₹360 crore at the upper end of the price band.
The company has also raised pre-IPO funding of ₹92 crore from public markets investor Amansa Investments Ltd. Shares were allotted to Amansa at a price of ₹58.5 per share.
Post-IPO, the company’s market cap at the upper band will be 2290 crore, and as per FY20 sales of 847 crore, the company is coming at a price to sales valuation of 2.7x which is comfortably priced as its peer Westlife Development trades at 6.16x price to sales and Jubilant Foodworks trades at 10.3x.
Burger King India will use the funds to roll out of new company-owned Burger King Restaurants by way of repayment or prepayment of outstanding borrowings of the company obtained for setting up of new company-owned Burger King Restaurants and capital expenditure incurred for setting up of new company-owned Burger King Restaurants, the company said in its red herring prospectus.
Burger King IPO is the national master franchisee of the Burger King brand in India. It has 216 Burger-King restaurants and eight sub-franchised Burger King restaurants in India. It is the second-largest fast-food burger brand globally based on the total number of restaurants as of 30 September 2020.