Burger King

Bumper Listing: Burger King Shares at Rs 115.35 at 92% Premium

  • Burger King India raised Rs 810 crore through a public issue which was 156.65 times during December 2-4.

[avatar user=”Apoorva Garg” size=”thumbnail” align=”left”]by Apoorva Garg[/avatar]

Shares of quick restaurant chain Burger King India had a strong premium of 92.25 per cent on the first day of trading on 14 December.

Expected better than listing premiums, as store editions had been growing, along with stellar subscriptions and continued strong revenue growth for more than five years.

The stock opened at Rs 115.35 against the issue price of Rs 60 on the BSE, while shares on the National Stock Exchange opened at Rs 112.50, an 87.50 percent premium to the IPO price.

At 10:03 am IST, the stock was trading 86.67 percent up at Rs 112, with a volume of 36,62,957 shares on the BSE, while it was up 87.33 percent at Rs 112.40 with 4,777,80,140 equity shares. On the National Stock Exchange.

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Analysts had expected Burger King to be listed at around a 70–75 percent premium to the issue price, while it was trading at a 75 percent premium in the gray market.

“We are optimistic on Burger King’s growth story, considering the challenges related to COVID and the growth of an organized industry benefiting from reduced competition from unorganized restaurants due to expansion of our outlets, with Burger King from 260+ to 700 in India Is well positioned to expand its footprint in India. Stores until December 2026, “Prashant Taps, AVP Research at Mehta Equities told Moneycontrol.

Therefore, he believes that investors should tap on this opportunity and keep the stock for Multibagger Story for 2-3 years.

Burger King India raised Rs 810 crore through a public issue which was 156.65 times during the period December 2-4. The company is going to use the proceeds released for loan repayment and expansion.

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According to the prospectus filed with SEBI, the quick service restaurant chain has 259 owned Burger King restaurants and nine sub-franchised Burger King restaurants. Burger King has a target to increase its restaurant count to 700 by the end of December 2026.

The company reported a 49 percent CAGR increase in revenue and EBITDA at 258 percent during the FY18 fiscal period, a strong store strength over the same period, although it reported losses at the PAT level.