US-based fast service restaurant (QSR) chain Burger King’s Indian arm will hit the capital markets on Wednesday as a part of its plans to boost Rs 810 crore to fund growth and pare debt. The chain, which at the moment operates 268 shops, of which eight are franchises primarily positioned at airports and the remainder are company-owned, in India has fastened the worth band of the preliminary public providing (IPO) at Rs 59-60 per share.
The promoter entity of the chain, QSR Asia Pte Ltd will promote as much as 6 crore shares, aggregating to Rs 360 crore on the higher finish of the worth band.
Burger King India IPO: Key factors
- Burger King India had undertaken a pre-IPO placement, by the use of rights concern of Rs 58.08 crore at a value of Rs 44 per share to promoter and preferential allotment of Rs 91.92 crore at a value of Rs 58.50 per share.
- Subsequently, the recent concern dimension has been decreased to Rs 450 crore from Rs 600 crore earlier. The difficulty will shut on December 4.
- The corporate has reserved as much as 10 per cent portion of IPO for retail buyers, as much as 15 per cent for non-institutional buyers and as much as 75 per cent for certified institutional buyers.
- It has said that bids could be made for no less than 250 fairness shares and in multiples of 250 fairness shares thereafter, which implies that retail buyers can apply for max as much as 3,250 fairness shares at larger value band.
- Not like different standard multinational QSR chains resembling McDonald”s, Dominos Pizza and Dunkin” Donuts, Burger King is itemizing its Indian arm on the bourses.
- Westlife Growth Ltd, proprietor of Hardcastle Eating places Pvt Ltd — the Grasp Franchisee of McDonald”s eating places in West and South India — is a publicly listed agency.
- Equally, Jubilant FoodWorks Ltd that has the unique rights to develop and function Domino”s Pizza model in India, Sri Lanka, Bangladesh and Nepal, moreover with the rights for creating and working Dunkin” Donuts eating places for India can be listed on the bourses.
- Beneath its Grasp Franchise and Growth Settlement, Burger King India is required to develop and open not less than 700 eating places, together with company-owned Burger King Eating places and Sub-Franchised Burger King Eating places, by December 31, 2026, in keeping with Burger King India CEO and member of board Rajeev Varman.
- Presently, the QSR chain employs 4,836 folks, together with its eating places and company workplace.
(With PTI inputs)
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