Burger King: Grand opening

Burger King: Grand opening

Quick restaurant chain Burger King India shares had a strong opening premium of 92.25% on the first day of trade on December 14.
The listing premium was better-than-expected given the stellar subscription and consistent strong revenue growth as well as store additions over the past more than five years of operations.
The stock opened at Rs 115.35 , against issue price of Rs 60 on the BSE, while on the National Stock Exchange, shares made a debut at Rs 112.50, a 87.50% premium over IPO price.
Burger King was expected to list at around 70-75% premium over issue price, while it was also trading at 75% premium in the grey market.

Analysts are optimistic on Burger King’s growth story considering improving organised industry growth benefiting from reduced competition from unorganised restaurants due to COVID-related challenges and expansion of its outlets wherein Burger King is well-positioned to expand its footprint in India from 260+ to 700 stores by December 2026.
Burger King India raised Rs 810 crore through public issue which was subscribed 156.65 times during the December 2-4 period. The company is going to utilise issue proceeds for debt repayment and expansion.
The quick service restaurant chain has 259 owned Burger King restaurants and nine sub-franchised Burger King restaurants as per the prospectus filed with the SEBI. Burger King has a target to increase its number of restaurants to 700 by the end of December 2026.

The company recorded a 49% CAGR growth in revenue and 258% in EBITDA during FY18-FY20, backed by strong store strength in the same period, though it reported losses at PAT level.

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