Burger King India shares hit ₹119 from issue price of Rs 60

Shares of Burger King India shares nearly doubled to ₹119 on BSE and NSE today as compared to the issue price of ₹60. The quick-service restaurant (QSR) chain’s Rs 810 crore initial public offer (IPO) had received an overwhelming response from investors, with the public offer being subscribed 156.65 times. The issue generated bids for 11.7 billion shares, worth Rs 70,000 crore, as against only 75 million on offer, making it one of the most-subscribed IPOs ever. As of 10:57, Burger King India shares traded at ₹110 on NSE.

The stock listed at Rs 115.35, a 92 percent premium against its issue price of Rs 60 on the BSE. After a minute of listing, the stock had risen to Rs 119.50, up 99 percent from its issue price on the BSE


In fact, the initial share sale got oversubscribed within a few hours of opening for a subscription on December 2. The portion meant for qualified institutional buyers (QIBs) was subscribed 86.64 times, non-institutional investors 354.11 times, and retail individual investors (RIIs) 68.15 times.

The IPO included a fresh issue of shares worth ₹450 crore. Burger King India had raised ₹364.5 crore from anchor investors. Kotak Mahindra Capital Company, CLSA India, Edelweiss Financial Services, and JM Financial were the managers to the offer. Currently, the quick-service restaurant (QSR) chain operates 268 stores in India, and out of them, eight are franchises, mainly located at airports, while the rest is owned by the company.

Meanwhile, the IPO of bread and biscuits maker Mrs Bectors Food Specialities will hit the capital markets on December 15 and will close on December 17. The price band has been fixed at ₹286-288 per equity share of a face value of ₹10 each. The IPO would comprise of a fresh issue of equity shares worth ₹40.54 crore and an offer for sale (OFS) by existing shareholders worth ₹500 crore.

The minimum bid lot is 50 equity shares and multiples of 50 equity shares thereafter.

Mrs Bectors Food also supplies buns to various international QSR chains in India, such as Burger King India Private Limited, Connaught Plaza Restaurants Private Limited, Hardcastle Restaurants Private Limited, and Yum! Restaurants (India) Private Limited.

“The company may incur losses in the future as well. However, BKIL’s target to open 700 restaurants by December 2026 is the key driver to the business. Also, the effective marketing strategy and the well-defined standard store opening process will be catalysts in increasing the number of footfalls in BKIL’s restaurants,” analysts at KRChoksey Shares and Securities said.

Although the COVID-19 crisis has adversely affected its ability to open new restaurants and expand its restaurant network temporarily, they continue to evaluate the pace and quantity of new restaurant openings and the expansion of its restaurant network. Moreover, the changing lifestyle and the eating habits of the youngest millennial population of India will further drive the revenue of BKIL.