Burger King India Listing –

Burger King India Limited, the Indian subsidiary of the US-based giant Burger King, has made stock investors’ wealthier as the stock more than doubled on its debut on December 14.

The stock opened at INR 115.35, against its issue price of INR 60 on the Bombay Stock Exchange, while on the National Stock Exchange, shares made a debut at INR 112.50, a 87.50% premium over IPO price.

The listing premium was better-than-expected given (1) the stellar subscription across investor category, (2) consistent revenue growth, and  (3) store additions over the past more than 5 years of operations.

On the Bombay Stock Exchange, the share price traded at INR 138.40, up by INR 78.40 or 130.67% over IPO price, with volumes of 19,154,767 equity shares, while on the NSE, the stock made a high of INR 135 and a low of INR 108.40 before it ended at INR 135, up 125% with volume of 186,792,834 when the market closed.

29 November, 2020

Burger King – one of the fastest growing and developing international Quick Service Restaurant chains (QSR) in India during the first 5 years of its operations based on number of restaurants. (Source: Technopak) is planning to raise INR 810 Cr via IPO [450 Cr Fresh Issue + 360 Cr OFS]

Burger King: Company Profile

The globally recognised Burger King brand, also known as the Home Of The Whopper, was founded in the year 1954 in the United States (US) and is owned by Burger King Corporation, a subsidiary of Restaurant Brands International Inc., which clamps a portfolio of fast food brands that are recognized around the world that include the Burger King, POPEYES, and Tim Hortons.

Burger King: Business

• Since opening its first restaurant in November 2014, Burger King have used its well defined restaurant roll out and development process with the aim of growing quickly, consistently, and efficiently across India QSR chain and capitalising on the growing market opportunity in India for QSR restaurants.
• The Company build its restaurant network using a cluster approach and penetration strategy with the objective to provide greater convenience and accessibility for its customers across relevant geographies.
• A key focus of the company business is promoting and maintaining operational quality, a people-centric culture and effective technology systems that enable it to optimise the performance of its restaurants enhance the customer experience it offer and contribute to its growth.

Network

As on June 30, 2019, Burger King had 202 Restaurants, including 7 Sub-Franchised Burger King Restaurants, across 16 states and union territories and 47 cities across India.

Company Strengths

Exclusive national master franchise rights in India

Strong customer proposition

Brand positioned for millennials

Vertically managed and scalable supply chain

Operational quality,

Well defined restaurant roll out and development process

Experienced, professional, and passionate management team

Company Promoters:

QSR Asia Pte. Limited is the promoter of the company

IPO Opening / Closing Date

IPO Details – Price, Minimum Bid and Other

Financial Performance

Revenue From Operations: INR 229.45 Cr (2017), INR 378.12 Cr (2018), INR 632.73 Cr (2019), and INR 846.80 Cr (2020)

Total Expenses: INR 305.98 Cr (2017), INR 470.97 Cr (2017), INR 682.41 Cr (2018), and INR 919 Cr (2020)

Profit (Loss) After Tax: INR -71.85 Cr (2017), INR -82.23 Cr (2018), INR -38.28 Cr (2019), and INR -77.6 Cr (2020)

Total Assets: INR 698 Cr (2017), INR 730 Cr (2018), INR 920 Cr, and INR 1198 Cr (2020)

Conclusion

Considering company’s valuation and financial parameters, FinBlab recommends NEUTRAL ratings on Burger King IPO

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