Burger King India is all set to open an a Rs 810 Crore Initial Public Offering (IPO) tomorrow. This share will end on Friday that is the 4th of December.
The IPO market has picked up pace this year once again. Since the Nifty and Sensex are hitting fresher highs each day with broader equity market indices, the analysts have suggested a similar rise in the IPO market too.
Keshav Lahoti, who is the Associate Equity Analyst for Angel Broking has said something important on the upcoming IPO’s. He has said, “Companies prefer to launch an IPO when there is liquidity and positivity in the stock market. When peers companies are trading at a premium valuation, companies get the advantage of announcing the IPO at a high price.
Many IPO launched over the last few months such as Route Mobile, Happiest Minds made investors double on the day of listing. Many companies delayed the IPOs due to the correction in the market due to the pandemic. Hence, the pipeline of the IPO is quite strong and market conditions are also favorable.” As per Burger King India.
Jimeet Modi, the founder and CEO of SAMCO Securities and Stock note has said with the ongoing uptrend, it will not be a surprise if we see a slew of IPO’s like IRFC, SBI Cards etc in the weeks to come.
Burger King India has raised Rs 92 Crore as a pre-IPO placement from Amansa Investments Limited, which is a reputed institutional investor last month.
The price band of IPO has been fixed at Rs 59 to Rs 60 per equity share. This offer comprises a fresh issue of equity shares amounting to Rs 400 Crore. It has also received an offer of sale of up to Rs 6 Crore equity shares by QSR Asia, who is the promoter.
Burger King India has reserved 75% of the issued shares for QIB’s (Qualified Institutional Buyers), 15% for HNI’s (High Net worth Individuals) and the remaining 10% for the retail investors.
The company plans to raise Rs 804 Crore at the lower end and Rs 810 Crore at the higher end of the price band. This issue will constitute 35.37% of the post issue paid up capital of the company.
The investors need to be extra cautious before applying for this. They need to keep in mind the ongoing restaurant scenario in the pandemic situation. The pandemic has adversely affected the opening of new restaurants.
They need to check with the ongoing market and then choose their shares. Burger King India on the other hand will be looking forward to having a good week at the share market.