Burger King garners Rs 364.5 Cr from anchor investors ahead of IPO

The proposed IPO will see the Indian subsidiary of the US-based Burger King raise Rs 810 crore, comprising a fresh issue of shares amounting to Rs 450 crore.
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US-based quick service restaurant (QSR) chain Burger King's Indian arm on Tuesday raised Rs 364.5 crore from anchor investors ahead of its initial share sale that opens for public subscription on Wednesday.

"The IPO committee of the board of directors of the company's resolution on December 1, 2020, and the promoter selling shareholder in consultation with the.... book running lead managers or BRLMs have finalised allocation of 6,07,50,000 equity shares in aggregate, to anchor investors at the anchor investor allocation price of Rs 60 per equity share," according to a BSE circular.

At this price, the amount raised by the company stands at Rs 364.5 crore.

The anchor investors include Government of Singapore, Sundaram Mutual Fund, SBI Mutual Fund, Integrated Core Strategies Asia Pte Ltd, HDFC Trustee Company Ltd, SBI Mutual Fund and ICICI Prudential Mutual Fund.

The chain, which currently operates 268 stores in India, of which eight are franchises mainly located at airports and the rest are company-owned, has fixed the price band of the initial public offering (IPO) at Rs 59-60 per share.

The proposed IPO will see the Indian subsidiary of the US-based Burger King raise Rs 810 crore, comprising a fresh issue of shares amounting to Rs 450 crore.

In addition, promoter entity QSR Asia Pte Ltd will sell up to six crore shares, aggregating to Rs 360 crore at the upper end of the price band.

The issue, which would open on Wednesday, will close on Friday (December 4).

Currently, the QSR chain employs 4,836 people, including at its restaurants and corporate office.

Bids can be made for a minimum of 250 equity shares and in multiples of 250 equity shares thereafter, which means that retail investors can apply for maximum up to 3,250 equity shares at higher price band.

The company has reserved up to 10 percent portion of IPO for retail investors, up to 15 percent for non-institutional investors, and up to 75 percent for qualified institutional investors.

Kotak Mahindra Capital Company, CLSA India, Edelweiss Financial Services, and JM Financial are the book running lead managers to the issue.

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

Edited by Megha Reddy

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