Burger King India made a strong share market debut with its stock listing at 92.25 percent gain over issue price on BSE (Bombay Stock Exchange). Share of Burger King India opened at $1.56 against an issue price of $0.82.
The stock further rose to $1.62, clocking 99.16 percent gains intra day over issue price on BSE.
On NSE (National Stock Exchange of India), the share opened 87.5 percent higher at $1.52 against the issue price. Further, the share rose up to 99 percent at $1.62 in early trade. About $0.105 million shares changed hands in early trade on NSE.
The quick service restaurant chain opened its initial public offering (IPO) on December 2. The share sale, which closed on December 4, was held in a price band of $0.80 to $0.82 per share. Shares were available in a lot size of 250 shares and thereof.
Net proceeds from the fresh issue of shares will be utilised for funding the rollout of new company-owned Burger King Restaurants and for general corporate purposes. Kotak Mahindra Capital Company, CLSA India, Edelweiss Financial Services and JM Financial are managers of the share sale.
As of September 2020, the company had 261 restaurants including eight sub-franchised Burger King Restaurants across 17 states and union territories and 57 cities across India, according to data.
On the third day of IPO, the firm received a subscription 156 times the issue size. The $810 million IPO received bids for $1,166 million equity shares (156.65 times) against IPO size of $7.45 million equity shares, as per the data available on stock exchanges. Retail investors lapped up the IPO with their reserved portion subscribed 68.14 times on Day 3.
The company planned to raise $110 million through the share sale at the higher end of price band. The offer comprised fresh issue of $7.5 million shares amounting to $450 million, while the promoter entity QSR Asia sold up to $6 million, aggregating to $360 million at the upper end of the price band.
