Continuing the momentum of IPO’s being launched
in India, Burger King India Limited’s IPO was open for subscription
between December 2 and 4, 2020.
Mybigtitsbabes com‘s shares were listed on the bourses on
December 14. The company’s stock price ended 125% higher at Rs 135
per share on the first day of its listing. It listed at a premium
of 92%.
Here is all you need to know about the
company’s IPO issue:
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| IPO Date |
December 02, 2020 to December 04, 2020 |
| Issue Type |
Book Built Issue IPO |
| Issue Size |
135,000,000 Equity Shares of Rs.10 totaling up
to Rs.810 Crore |
| Fresh Issue |
75,000,000 Equity Shares of Rs.10 totaling up
to Rs.450 Crore |
| Offer for Sale |
60,000,000 Equity Shares of Rs.10 totaling up
to Rs.360 Crore |
| Face Value |
Rs.10 per equity share |
| IPO Price |
Rs.59 to Rs.60 per equity share |
| Market Lot |
250 Shares |
| Min Order Quantity |
250 Shares |
| Listing At |
BSE, NSE |
Burger King India Limited proposes to utilize
the net proceeds from the fresh issue for funding the roll-out of
new company-owned Burger King Restaurants and general corporate
purposes.
| Bid/Offer Launch date |
December 02, 2020 |
| Bid/Offer Last date |
December 04, 2020 |
| Basis of Allotment finalization date |
December 09, 2020 |
| Initiation of Refunds |
December 10, 2020 |
| Credit of Shares to Demat Acct |
December 11, 2020 |
| IPO Shares Listing Date |
December 14, 2020 |
Burger King India Limited is one of the
fastest-growing international quick-service restaurant (QSR) chains
in India during the initial five years of its operations based on
the number of outlets.
It is the national master franchisee of the
Burger King ® brand in India. Hence, the company has exclusive
rights to develop, establish, operate, and franchise Burger King
branded restaurants in India.
The global brand was founded in the US in 1954
and owned by Burger King Corporation, a subsidiary of Restaurant
Brands Inc. It is the second-largest fast-food burger brand
globally with a global network of more than 18000 restaurants in
more than 100 countries.
The master franchise agreement allows the
company to tailor the menu to Indian tastes and preferences, as
well as pricing. Burger King India Limited endeavors to cater to
the local Indian palate with a range of options using the brand’s
flame grilling expertise.
The first restaurant was opened in 2014 and as
of June 30, 2019, Burger King India had 202 restaurants including
seven sub-franchised Burger King Restaurants in the
country.
Burger King Corporation awarded Burger King
India Limited the “Global Master Franchisee of the Year” in 2018
for its strong business performance on sales, operations,
development, and profitability.
Further, the company has consistently won
regional performance awards since 2015, including “APAC Master
Franchisee of the Year” and “APAC Operator of the Year” in 2018, as
well as “APAC Marketer of the Year” in 2017 and 2018.
- Burger King India Limited is the
national master franchisee of the Burger King brand in India, with
exclusive rights to develop, establish, operate, and franchise
Burger King branded restaurants in India.
- The company endeavors to offer
quality products that are tailored to Indian taste and preferences
and provide substantial value at attractive price points. It has a
range of vegetarian and non-vegetarian burgers covering both value
and premium offerings. The menu items are developed to be made in
India and cater to the local Indian palate.
- The company has positioned the
brand to target the millennial population. With India’s millennial
population growing at a steady pace, the brand is trying to benefit
from the focused approach.
- The company has a vertically
managed and scalable supply chain model in which it individually
negotiates with and actively manages its suppliers of ingredients
and packaging materials.
- Burger King India Limited has made
significant investments in its operations and is disciplined about
maintaining well-defined and standardized processes in order to
promote and maintain the quality of its operations across its
business.
- The operations of the company are
driven by its people-centric policies and practices, which are
principal components of its ability to enhance customer experience
at its restaurants.
- Burger King India Limited has a
well-defined new-restaurant rollout process that enables it to
identify locations and build out restaurants quickly, consistently,
and efficiently. It builds 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.
- The management team of the company
includes former senior employees with significant work experience
in the food and beverage industry, retail, and major fast moving
consumer goods brands.
- Real and perceived health concerns
arising from food-borne illnesses, health epidemics, food quality,
allergic reactions, or other negative food-related incidents could
have a material adverse effect on the company’s business, results
of operations, financial condition, and prospects.
- The company’s exclusive right to
develop, operate and franchise Burger King restaurants in India
depends on the Master Franchise and Development Agreement, which
imposes certain restrictions and other obligations on its
operations and the termination of which would adversely affect its
business, results of operations, financial condition, and
prospects.
- The demand for Burger King’s
products may decrease due to changes in consumer preferences and
food habits, which could have a material adverse effect on its
business, results of operations, and financial
condition.
- The company’s business depends in
part on the continued international success and reputation of the
Burger King brand globally, and any negative impact on the Burger
King brand may adversely affect its business, results of
operations, and financial condition.
- Any deterioration in the
performance of, or relationships with, third-party delivery
aggregators, may adversely affect the company’s business, results
of operations, and financial condition.
- Burger King may not be able to
identify suitable locations and successfully develop and roll out
new restaurants, and its expansion into new regions and markets may
present increased risks due to its unfamiliarity with the areas in
which the restaurants are located.
- New restaurants may not be
profitable or perform as planned and could also adversely impact
sales in its existing restaurants, which could adversely affect its
business, results of operations, and financial
condition.
- The success of the company’s
business strategy depends on its ability to establish, deliver and
maintain its value leadership strategy, the failure of which could
have a material adverse effect on its business, results of
operations, and financial condition.
- Changes in governmental regulation
or public perception with respect to healthy eating habits could
adversely affect the company’s business, results of operations, and
financial condition.
- Any failure to maintain effective
quality control systems for its supply chain or restaurants could
have a material adverse effect on its business, reputation, results
of operations, and financial condition.
- Failure to obtain or maintain or
renew licenses, registrations, permits, and approvals in a timely
manner or at all may adversely affect the company’s business and
results of operations.
- The company relies on a single
third-party distributor for the purchase, supply, and delivery of
most of its ingredients and packaging materials and if it is
required to source its ingredients or packaging materials from
alternative distributors, deliveries to certain of its restaurants
may be disrupted or delayed, which could adversely affect its
operations and have an adverse effect on its business, results of
operations, and financial condition.
Here is a quick look at some important
information about Burger King India Limited:
|
31-Mar-20 |
31-Mar-19 |
31-Mar-18 |
31-Mar-17 |
| Total Assets |
1197.71
|
920.47
|
730.36
|
698.46
|
| Total Income |
846.83
|
644.13
|
388.74
|
234.13
|
| Total Expenses |
919.01
|
682.41
|
470.97
|
305.98
|
| Profit After Tax |
-76.57
|
-38.28
|
-82.23
|
-71.77
|
All amounts in INR Crore
- QSR Asia PTE. Ltd.
Summing Up
Burger King India Limited is required to open
at least 700 restaurants by December 31, 2026, as per the Master
Franchise and Development Agreement. Before you invest, ensure that
you read through the company’s financials and the Red Herring
Prospectus (RHP) carefully.
Happy Investing!
