Burger King IPO Opens on Dec 2, Massive Demand in Grey Market

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Burger King IPO Opens on Dec 2, Massive Demand in Grey Market
Credit: © Reuters.

By Aditya Raghunath

Investing.com -- Burger King India Ltd (NS: BURG ), the quick-service restaurant chain, is set to launch its IPO (initial public offering) on December 2. The IPO consists of a fresh issue of Rs. 450 crore and an offer for sale of six crore equity shares by promoter QSR Asia and will be sold in a range of Rs. 59-Rs. 60. The company is trying to raise Rs. 804 crore at the lower end of the price band and Rs. 810 crore at the higher end.

According to a report in The Economic Times, “Dealers in the grey market said the stock was being traded at a premium of Rs. 30-34, which translates to nearly 56 per cent premium to the offer price.”

Traders are comparing the Burger King IPO with Jubilant Foodworks Ltd (NS: JUBI ) (Domino’s Pizza) and find that the valuations are cheap in comparison.

The company’s filings with SEBI said, “As of the date of  filing  of  this  Red  Herring  Prospectus (November 25, 2020), we  had  259  Company-owned  Burger  King  Restaurants  and nine Sub-Franchised  Burger  King  Restaurants,  of  which 249 were  operational,  including two Sub-Franchised  Burger  King Restaurant.”

Burger King India is fastest to 200 restaurants by an international QSR (quick-service restaurant) brand, according to a Technopak report. There is a good chance that the IPO will open at a significant premium to its listing price, given the subscription demand. 

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  • Himanshu Singh @Himanshu Singh
    Such IPO comes at time of reversal
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    • amit bora @amit bora
      not yet
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  • Gourav Kumar Gupta @Gourav Kumar Gupta
    what's the GMP of the IPO
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    • jay patel @jay patel
      +30
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