Burger King IPO : Solid Listing

December 14, 2020 admin 24 comment

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Burger King India IPO : Chanakyanipothi.com is India`s Oldest & most Trusted Investment Blog. Operational since 8th December 1999, this is the Only Investment Platform in India, which has successfully completed 20 Years.We are pleased to explain A to Z of Burger King India IPO, in depth analysis and updates on Grey market premium,subject to rates and fix application rates.

Listing :  On 14 December 2020, the scrip listed at Rs. 115 and during the day moved up to high of Rs. 131.

IPO Guidance :
Apply. For detailed live analysis,  youtube.com/c/chanakyanipothi

Grey Market Premium News of Burger King India Limited

On 12 Dec 2020
GMP Rs. 45

For Past trend ,See Page bottom box

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Total Subscription of Burger King India Limited:
on Day 3(on 04.12.2020 at 5.00 pm )
QIB :  40423,729 shares  : 86.64 T
NII :   20440677 Shares : 354.11 T
RII :  13627,118 Shares  : 68.15 T
Total :744915241 Shares : 156.65 T

Short Note about Burger King India Limited:

Burger King India ltd is one of the fastest growing international QSR chains in India during the first five years of our operations based on number of restaurants. As the national master franchisee of the BURGER KING® brand in India, it has exclusive rights to develop, establish, operate and franchise Burger King branded restaurants in India.
Global Brand & Network:
The globally recognised Burger King brand, also known as the “HOME OF THE WHOPPER®”, was founded in 1954 in the United States and is owned by Burger King Corporation, a subsidiary of Restaurant Brands International Inc., which holds a portfolio of fast food brands that are recognized around the world that include the BURGER KING®, POPEYES® and TIM HORTONS® brands. The Burger King brand is the second largest fast food burger brand globally as measured by the total number of restaurants, with a global network of over 18,000 restaurants in more than 100 countries and U.S. territories as at June 30, 2019.

Indian Network:
Since opening its first restaurant in November 2014, BKIL has used its well defined restaurant roll out and development process with the aim of growing quickly, consistently and efficiently into a pan-India QSR chain and capitalising on the growing market opportunity in India for QSR restaurants. As at June 30, 2019, it had 202 restaurants, including seven Sub-Franchised Burger King Restaurants, across 16 states and union territories and 47 cities across India. As at the date of this DRHP, it had 216 Company-owned Burger King Restaurants and eight Sub-Franchised Burger King Restaurants.

Financials:
Its revenue from sale of food and beverages grew from Rs 2,28.29 crore in Fiscal 2017 to Rs6,28.59 crore in Fiscal 2019 and was Rs2,10.89 crore in the three months ended June 30, 2019. Its same-store sales grew at 12.23% and 29.21% in Fiscal 2018 and 2019, respectively. Its gross margin grew from Rs 1,36.56 crore in Fiscal 2017 to Rs 4,00.36 crore in Fiscal 2019 and was Rs 1,36.34 crore in the three months ended June 30, 2019

The following are the strengths of the company:
• Exclusive national master franchise rights in India
• Strong customer proposition
• Brand positioned for millennials
• Vertically managed and scalable supply chain
• Operational quality, a people-centric operating culture and effective technology systems
• Well defined restaurant roll out and development process
• Experienced, passionate and professional management team

The promoters of Burger King India Limited :
QSR ASIA PTE. LTD.

Main object of the issue of Burger King India Limited:
The Offer comprises of a Fresh Issue and an Offer for Sale.
The Company will not receive any proceeds from the Offer for Sale.
The Net Proceeds from the Fresh Issue are proposed to be utilised in Funding roll out of new Company-Owned Burger King Restaurants;

IPO Particulars of Burger King India Limited:

IPO Opens on : 02 Dec  2020
IPO Closes on : 04 Dec 2020
Issue Type: Book Built Issue IPO
Issue : Up to 13,50,00,000 Equity Shares, aggregating up to Rs 810 Crore
* Fresh Issue : 750,00,000 Equity Shares, aggregating up to Rs 450 Crore
*Offer for Sale : 60,000,000 Equity Shares, aggregating up to Rs 360 crore
Issue Size Rs. 810 Crore
Fresh Issue : Rs. 450 crore
Offer for Sale : Rs. 360 crore
Face Value per share : Rs. 10
Price Band: Per Equity Share: Rs. 59-60
Minimum Order Quantity: 250 Shares
Listing will at: BSE,NSE
Shares offered to
Anchors 607,50,000 Shares = Rs 364.50 Crs
QIB 405,00,000 Shares = Rs 243 Crs
NII 20,250,000 Shares = Rs 121.50 Crs
RII 135,00,000 Shares = Rs. 81 Crs (Lot size: 250 = 54000 Forms)
Tentative timeTable:
27 Nov 20 – Price Band announced
1 Dec 2020 – Anchor List
2 Dec 2020 – Offer Opens
4 Dec 2020 – Offer Closes
9 Dec 2020– Finalisation of Basis of Allotment
10 Dec 2020– Unblocking of ASBA
11 Dec 2020– Credit to Demat Accounts
14 Dec 2020– Listing on NSE & BSE

Financial snapshot of Burger King India Limited:
Earnings per Share 2017-18 Rs (3.10)
Earnings per Share 2018-19 Rs (1.44)
Earnings per Share 2019-20 Rs (2.87)
Earnings per Share 2020-21(6M) Rs (4.14)
Book Value of the Share as on 30.09.2019 Rs 7.62

Return on Net Worth: 17-18 (28.64) %
Return on Net Worth: 18-19 (15.33) %
Return on Net Worth: 19-20 (27,80) %
Return on Net Worth: 20-21 (6M) (54.34) %

Upper Price Band/last EPS: NA
Upper offer price/Book Value Ratio : 7.87
Equity Shares outstanding prior to the Offer  3066,54,605 Equity Shares
Equity Shares outstanding after the Offer :38,16,54,605 Equity Shares
Pre IPO  Promoters Holding:99.39%

Peer Comparison:
Jubilant Foodworks @ PER 119.84
Westlife Development @ PER N.A.

Lead Managers of Burger King India Limited IPO:
Kotak Mahindra Capital Company Limited
CLSA India Private Limited
Edelweiss Financial Services Limited
JM Financial Limited

Registrar to the IPO :
Link Intime India Private Limited

Registered Office of Burger King India Limited :
: Unit Nos.1003 to 1007,
10th Floor, Mittal Commercia,
Asan Pada Rd, Chimatpada,
Marol, Andheri (E),
Mumbai,
Maharashtra, 400 059
Ranjana Saboo,
Company Secretary, Compliance Officer

Trend in Grey Market Premium of Burger King India Limited 

On 10 Dec 2020 @ 12.00 noon
GMP Rs. 44,
On 9 Dec 2020 @ 7.00pm
GMP Rs. 45,
On 8 Dec 2020 @ 7.00pm
GMP Rs. 45-46, solid fancy
On 5 Dec 2020 @ 6.30 pm
GMP Rs. 40-41, solid fancy
Application :Rs. 250/No trades
Subject to Rates : Rs. 7000
On 4 Dec 2020 @ 6.30 pm
GMP Rs. 37-39,
Application :Rs. 250/No trades
Subject to Rates : Rs. 7000
On 3 Dec 2020 @ 12.30 mp
GMP Rs. 32-33
Application :Rs. 250
Subject to Rates : Rs. 5000
On 2 Dec 2020 @ 1.00 pm
GMP Rs. 29-30
Application :Rs. 250
Subject to Rates : Rs. 5000
On 1 Dec 2020 @ 12.30 noon
GMP Rs. 26-26
Application :Rs. 250
Subject to Rates : Rs. 4500
On 30 Nov 2020 @ 5.30 pm
GMP Rs. 27-28
Application :Rs. 250
Subject to Rates : Rs. 6000
On 28 Nov 2020 @ 7.00 evening
GMP Rs. 32-34
Application :Rs. 0
Subject to Rates : Rs. 6000
On 27 Nov 2020 @ 6.00 evening
GMP Rs. 35
Application :Rs. 0
Subject to Rates : Rs. 5000
On 27 Nov 2020 @ 9.30 am
GMP Rs. 0
Application :Rs. 0
Subject to Rates : Rs. 5000
On 26 Nov 2020 @ 7.00 evening
GMP Rs. 25-26
Application :Rs. 6000