Burger King IPO Subscribed 157 Times, IPO Allotment Date 9th December

The initial public offering of Burger King India, a quick service restaurant chain, witnessed strong interest from investors across categories, reaching a subscription of over 157.16 times till 5pm on Friday, the final day of bidding.

This makes it second most successful IPO of 2020 by subscription after Mazagon Dock Shipbuilders which subscribed over 157.41 times.

Burger King India shares were in huge demand as its three-day share sale via Initial Public Offering (IPO) which closed on Friday was subscribed 156.65 times. 

Burger King IPO received over 1,100 crore bids for its shares compared with 7.45 crore shares on the offer, data compiled by the National Stock Exchange showed. Burger King's Rs 810 crore initial public offering received a strong response from the retail investors as the portion reserved for retail investors was subscribed over 30 times. The issue was subscribed 24 times in the portion reserved for qualified institutional buyers (QIB) and 262 times in the non-institutional investors (NII) category. The shares were sold in price band of Rs 59-60 per share and are likely to be listed on stock exchanges on December 14.

The allotment for the IPO will be announced on 9 December and listing will be on 14 December.

Earlier on Wednesday, the company raised Rs 364.5 crore from a total 55 investors. The anchor allotment was done at Rs 60 a share.

As of 30 September, the company reported a revenue of Rs 135.20 crore while for fiscal year 2020 it reported revenue of Rs 841.20 crore. The company is yet to report a profit, however, it had been able to register decent gross margin, EBITDA, and a positive operating cash flow in pre-covid times.

Investment banks Kotak Mahindra Capital, Edelweiss, CLSA and Jm Financial advised Burger King India on its IPO.