Burger King India IPO: Points to note before subscription opens on December 2

Burger King India is set to open its maiden initial public offering (IPO) on December 2 (Wednesday). The issue will be open until December 4 and the listing of equity shares is expected to be on December 14. The company in consultation with merchant bankers has fixed IPO price band at Rs 59-60 per share, which is 5.9-6 times of its face value of equity shares.

The quick-service restaurant (QSR) chain has been operating in India for a little over five years old and is one of the fastest-growing QSR chains in the country.     

Burger King and its promoters are looking to raise Rs 810 crore in the IPO through a combination of a fresh issue and an Offer For Sale (OFS). Burger King began operating in India in the financial year 2015 and has since seen rapid expansion to now owning 261 restaurants across the country.

The public issue consists of a fresh issue of Rs 450 crore and an offer for sale of 6 crore equity shares by promoter QSR Asia.

The fresh issue size was reduced to Rs 450 crore from Rs 600 crore earlier as the company has undertaken a Pre-IPO placement by way of rights issue of Rs 58.08 crore to promoter selling shareholder at Rs 44 per equity share and preferential allotment of Rs 91.92 crore to Amansa Investments at a price of Rs 58.50 per share.

One can put bids for a minimum of 250 equity shares and in multiples of 250 equity shares thereafter, which means retail investors can apply for maximum of up to 3,250 equity shares at a higher price band.