EbeneInfo – IN – Burger King trades at over 40% premium in grey market ahead of IPOen

    0
    0

    Burger King India, the Indian subsidiary of US-based hamburger fast food restaurants chain, traded in the grey market at more than 40 percent premium over its issue price, ahead of its public offering

    Shares are available at a premium of Rs 20-25 in the grey market against issue price of Rs 59-60 per share, as per the data available on the IPO Watch website

    At the lower end of price band in percentage terms, the premium comes to 339 percent and 424 percent over IPO price, while the premium at upper price band comes at 333 percent and 417 percent

    Burger King decided to launch its Rs 810-crore maiden public issue on December 2 and close on December 4

    The issue consists of a fresh issue of Rs 450 crore (which reduced from Rs 600 crore earlier due to pre-IPO placement) and an offer for sale of 6 crore equity shares by promoter QSR Asia Pte Ltd

    Burger King is the fastest growing international QSR (quick service restaurant) chain in India during the first five years of their operations based on the number of restaurants, reports Technopak Their master franchisee arrangement provides them with the ability to use Burger King’s globally recognised brand name to grow their business in India

    IPO market likely to remain hot in December as 3-4 public issues may hit the Street

    « Burger King peer Jubilant Foodworks is currently trading at 87 EV/sales on FY20 basis We believe Burger King won’t get such a premium valuation as Jubilant Foodworks as it does not have a profitability track record like Jubilant, its outlets are young and we believe majority of the Indian people prefers Jubilant – Pizza over burger sold by Burger King, » Keshav Lahoti, Associate Equity Analyst at Angel Broking told Moneycontrol

    Its revenue from sale of food and beverages grew from Rs 3752 crore in FY18 to Rs 83532 crore in FY20 However, the COVID-19 crisis has had a significant impact on its results of operations at the end of FY20 and in the six months ended September 2020, resulting in a decrease of revenue from sale of food and beverages to Rs 13469 crore in the six months ended September 2020, compared to Rs 41937 crore in the six months ended September 2019

    In addition, although its same-store sales grew at 2921 percent in FY19 and 611 percent in the nine months ended December 31, 2019, same-store sales decreased by 030 percent in FY20 and by 569 percent in the six months ended September 2020 primarily due to the impact of the COVID-19 crisis

    The company would utilise fresh issue proceeds for funding roll out of new company-owned Burger King Restaurants; and general corporate purposes

    As of November 25, the filing the date for red herring prospectus, Burger King had its over 259 restaurants and nine sub-franchised restaurants, of which 249 were operational, including two sub-franchised Burger King Restaurants

    Under the Master Franchise and Development Agreement, company is required to develop and open at least 700 restaurants (including Company-owned Burger King Restaurants and Sub-Franchised Burger King Restaurants) by December 31, 2026, which has recently been extended by one year from December 31, 2025 due to the COVID-19 crisis

    Coronavirus Essential | 30 crore Indians to be vaccinated by July 2021; PM Modi to visit Serum Institute

    Copyright © e-Eighteencom Ltd All rights reserved Reproduction of news articles, photos, videos or any other content in whole or in part in any form
    or medium without express writtern permission of moneycontrolcom is prohibited

    Copyright © e-Eighteencom Ltd All rights resderved Reproduction of news articles, photos, videos or any other content in whole or in part in any form or medium without express writtern permission of moneycontrolcom is prohibited

    Burger King, Initial public offering, India

    EbeneInfo – IN – Burger King trades at over 40% premium in grey market ahead of IPO
    Related title:
    Burger King trades at over 40% premium in grey market ahead of IPO
    Burger King looks to raise Rs 810 crore via IPO
    Burger King issue looks attractive: Angel broking
    Burger King IPO proceeds to help set up new stores, repay term loan: Varman
    Burger King sets share sale price band at Rs 59-60 a piece
    Burger King IPO to open on December 2; price band fixed at Rs 59-60 per share
    Burger King IPO opens on Dec 2 at a price band of
    Burger King IPO to open on December 2; price band fixed at ₹59-60 per share
    Burger King marches ahead with India IPO
    Burger King India IPO To Float Shares Between Rs 59-60, Aims To Raise Rs 810 Croresen

    Source: https://www.moneycontrol.com/news/business/ipo/burger-king-trades-at-over-40-premium-in-grey-market-ahead-of-ipo-6164431.html

    Abonnez-vous à notre chaîne Youtube en cliquant ici

    Vidéo du jour: De la cocaïne retrouvée dans une école maternelle de Seine Saint Denis, deux enfants hospitalisés

    – Pub –