Burger King India IPO debuts with a bumper listing as share price rise by over 100 pc
Quick service restaurant (QSR) Burger King India listed on the Indian stock markets on Monday with a bumper opening and gained more than 100 percent as the much-anticipated initial public offering (IPO) matched the expectations of the investors.
The Burger King India stock opened the day at Rs 115.35 as against the issue price of Rs 60 on the BSE while on the National Stock Exchange (NSE), it listed at Rs 112.50.
At the end of the day, the share price of Burger King India closed at Rs 138.40 on BSE recording a gain of 130.67 percent while on the NSE it gained 125 per cent to end at Rs 135.
The IPO of Burger King India was commanding a premium of 70-75 percent even before its debut on the stock markets. This performance matches a similar response which other companies received which went for an IPO this year.
Happiest Minds, the Bengaluru-headquartered IT company, saw its share price doubling when it debuted on the stock markets. There was a similar performance of the technology company, Route Mobile.
The IPO of Burger King India was a heavily subscribed issue and received bids by 156.65 times. It was priced in the range of Rs 59-60 per share, making it an attractive public issue. The initial share sale got oversubscribed within a few hours of opening for subscription on December 2 and closed on December 4.
The investor interest also reveals the potential of the India consumption story.
Analysts believe that the changing food habits of Indian consumers and the unorganised segment taking a hit due to COVID-19 is likely to boost the business prospects of quick-service restaurant chain - Burger King India as it looks to expand within the country.
Burger King India is among the top three most-subscribed IPO this year, along with Happiest Minds Technologies and Mazagon Dock Shipbuilders.
Burger King India runs the franchise of Restaurant Brands International of US chain – Burger King. Currently, the quick-service restaurant (QSR) chain operates 268 stores in India and out of them, eight are franchises — mainly located at airports — while the rest are owned by the company. It plans to have at least 700 restaurants by 2026.