IPO Details
Below are key details about the IPO of the Company
- IPO Start Date – 2nd Dec 2020
- IPO End Date – 4th Dec 2020
- IPO Listing Date – 14th Dec 2020
- IPO Price – INR 59 – 60
- IPO Lot Size – 250
- Minimum investment required – INR 15,000
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Business Details
Burger King is second largest fast food hamburger chain in the world. It has more than 18,000 restaurants in the World. It is present in more than 100 countries around the globe.
The Company is also present in India and has opted for going public. This is the only multi national fast food food chain to opt for listing on the exchanges. This makes one think that Company is serious about their presence in India.
As of now it has around 238 retail outlets in India. Most of the retail chains are present in Air port areas which makes it exclusive premium food chain as of now limited only to Air passengers.
Below are the food items from the Company as of this writing.
- Whopper
- Burgers
- Premium Burgers
- Beverages
- Desserts
- Fries, Sticks and Coffee etc other eatables not classified under Burgers
The prices of the products are on par with other multinational retail chains in India. It has also created products specific to Indian taste which is good initiative from the Company.
Financial Snapshot
Below are key financials of the Company for year ending 2019 (Rupee in million)
- Total Revenue – 6441
- Total Expense – 6597
- Loss for year – 155
IPO Subscription Status
Below is IPO Subscription status of the Company. I will be updating this section with time.
- QIB – 86.64 times
- NII – 354.11 times
- RII – 68.15 times
- Total Subscription is 156.65 times
Below is meaning of the Key terms used above
- QIB is (Institutes or Mutual Funds like HDFC AMC etc)
- NII is (People bidding for more than 2 lakhs in IPO application)
- RII is (People bidding for less than 2 lakhs)
- Employee and Others are Reserved Quota Investors.
My Opinion
The closest company which can be compared with Burger King is Jubilant Food Works catering the Dominos Pizza food retail chain. So one can expect the Burger King to demand the same premium valuations.
As of this writing it is small compared to Jubiliant Food Works which is a Mid Cap company so if Company becomes serious with Indian market and starts expanding its foot print then it may resonate the story of Dominos as well.
The fast food chains are becoming status symbol and that too will help Company. However at this point Company is in losses and it will be interesting to see how premium valuation it receives in IPO bidding. Majority of shares around 75% is allocated to QIB. So they will drive the subscription status.