New Delhi: Burger King India on Monday made a strong debut with a premium of 92.25 percent on the first day of trade on December 14. The shares of the restaurant chain opened at Rs 115.35, a huge premium of 92.25 per cent against the issue price on the BSE, while on the National Stock Exchange, shares made a debut at Rs 112.50, an 87.50 percent premium over IPO price.
The price range for the Rs 810-crore initial public offering (IPO) was fixed at Rs 59-60 per share.
The listing premium of Burger King was better-than-expected including the stellar subscription and consistent strong revenue growth. The Fast food restaurant chain currently operates 268 stores in India and out of them, eight are franchises. Additions of the new stores over the past more than five years of operations has been exceptional.
According to the analysts, it was expected that Burger King will list at around 70-75 percent premium over issue price, while it was also trading at 75 percent premium in the grey market.
The primary market offering was subscribed by a whopping 156.65 times, receiving bids exceeding 1,100 crores compared with 7.45 crore shares on offer.
The company recorded a 49 percent CAGR growth in revenue and 258 percent in EBITDA during FY18-FY20, backed by strong store strength in the same period, though it reported losses at PAT level.
