Burger King files IPO papers; plans to raise Rs 542 Cr via fresh issue of shares

Burger King India Ltd, a quick service restaurant chain, has filed draft papers with markets regulator SEBI to raise Rs 542 crore through fresh issuance of shares in the IPO.

According to the addendum to the draft red herring prospectus (DRHP) filed with SEBI on Wednesday, Burger King's IPO comprises fresh issue of equity shares aggregating up to Rs 542 crore and an offer for sale of up to six crore equity shares by QSR Asia, the promoter.

Net proceeds from the fresh issue are proposed to be utilised for funding the rollout of new company-owned Burger King restaurants and for corporate purposes.

The initial share-sale is being managed by Kotak Mahindra Capital Company, CLSA India, Edelweiss Financial Services and JM Financial.

The company's shares are proposed to be listed on the BSE and the NSE.

As of September 2020, the company has 261 restaurants including eight sub-franchised Burger King Restaurants across 17 states and union territories and 57 cities across India, as per the addendum.

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The company is one of the fastest growing international QSR chains in India during the first five years of operations based on number of restaurants.

Earlier, the company had filed draft papers with SEBI in November 2019 to raise Rs 400 crore through fresh issue of shares and an offer for sale of up to 6 crore equity shares by QSR Asia. Now, it has increased the size of the fresh issue.

The regulator has given relaxation till March 31 to companies in respect of filing of fresh offer document in case of increase or decrease of issue size by 50 percent.

Earlier in September, media reports suggested that India’s largest ecommerce marketplace Flipkart is also preparing to go public as early as 2021, possibly at an overseas location.

A report from Reuters said that the initial public offering (IPO) could see Flipkart's valuation in the range of $45-50 billion.

(Disclaimer: Additional background information has been added to this PTI copy for context)