Burger King India’s IPO gets fully subscribed on first day of opening

In a great start, the initial public offer (IPO) of Burger King India Ltd, a quick-service restaurant chain was fully subscribed by noon on Wednesday which is the first day of bidding. Data available with the NSE and BSE suggest that the retail part of the stake’s sale was subscribed 5.1 times, while the part of the stakes which was reserved for institutional investors has received no subscriptions as of yet. The part of the stakes reserved for high net worth investors was subscribed 7 percent.

Burger King India currently operate 268 stores Pan-India and had fixed the price range at Rs 59-Rs 60 per share. The IPO subscriptions will cease on Friday. Previously, the company had raised a total of Rs 364.5 crore from 55 investors at an anchor allotment of Rs 60 per share.

Fidelity Funds – India Focus Fund turned out to be the biggest investor and allocated 8.23 percent of the anchor investment part followed by Eastsprings Investments India Consumer Equity Open Ltd and the Government of Singapore which invested 7.13 and 6.79 percent respectively. 

Other investors that allocated funds during Wednesday’s IPO include Amansa Holdings Private Ltd, Fidelity Investment Trust – Fidelity Emerging Markets Fund, ICICI Prudential Midcap Fund and Aditya Birla Sun Life Trustee Private Limited A/C Aditya Birla Sun Life Small Cap Fund were allocated 6.72 percent, 6.35 percent, 4.76 percent and 4.42 percent respectively.

Everstone Capital, which is a private equity fund, via its investment vehicle QSR Asia Pte Ltd, promoter entity owns a stake of 94.34% stake in Burger King India Ltd. The IPO comprised the issuance of fresh Equity Shares amounting up to Rs 400 crore by the company and a sale offer of up to 60 million equity shares by QSR Asia Pte. Ltd. The proceeds of the collected funds will be used to repay the existing debt and finance the capital expenditure for new company-owned stores. The company has a debt of Rs 757 crores as of the first half of FY 2021.