Burger King has filed paper for the IPO in Indian Stock Market. Burger King also is known as ‘Home of the Whopper’ is one of the fastest growing fast food joint in India as well as internationally.
History of Burger King Company
Founded in 1954 in the United States is owned by Burger King Corporation, a subsidiary of Restaurant Brands International Inc. The first five years of operations have been very fruitful for the company as it expanded globally. Burger King has exclusive rights to develop, establish, operate and franchise in branded restaurants in India. Recently the news is in the air that Burger King is undergoing IPO.
How Burger King become 2nd largest Fast Food Burger Brand?
The growth of the company has been remarkable. It is the second largest fast food burger brand globally with a global network of over 18,000 restaurants in more than 100 countries. From FY 2015-16 to FY 2018-2019 the revenue of the company grew from Rs. 2,282.86 million to Rs. 6,285.86 million from sale of food and beverages. At the end of June 30,2019 the company ended at Rs. 2,108.87 million in three months. In Fiscal 2018 and 2019 their sales grew at 12.23% and 29.21%. Also their gross margin grew from Rs. 1,365.63 million in Fiscal 2017 to Rs. 4,003.58 million in Fiscal 2019.
Burger King India Business Strategy
Burger King builds their network using a cluster approach and penetration strategy with the objective to provide greater convenience and accessibility for their customers. Burger King’s business strategy includes:
1. Continued expansion of the portfolio
2. Enhance productivity and operational efficiencies
3. Optimizing the value of their asset portfolio through an efficient capital structure.
Burger King IPO Date | GMP | Allotment
The dates for opening and closing of the IPO is not disclosed yet. The face value of each IPO is going to be RS.10. Cash price of the IPO is not disclosed yet. The promoter of Burger is QSR ASIA PTE. LTD. The lead manager to this issue is Kotak Mahindra Capital Company Limited, CLSA Indis Private Limited, Edelweiss Financial Services Limited and JM Financial Limited. The Registrar to this issue is link Intime India Private Limited. With the IPO Burger King India Ltd has been engaged in talks to raise around Rs.100-150 Crore from private equity funds.
Burger King IPO’s Price Band
Burger King entered in India in 2014 and they filed for an IPO in November 2019. The fast food chain received the capital market regulator and in January 2020, SEBI gave its consent to float its Initial Public Offering. Burger King’s offer comprises fresh issue of equity shares aggregating up to Rs. 400 Crore and an offer for sale of up to 6 crore equity shares by QSR Asia.
Burger King has been experimenting and growing rapidly with 202 restaurants by the end of June 30, 2019. Launching their brand from flagship locations in high traffic and high visibility locations in key metropolitan areas and cities across India helps them to get clusters of audience or customers. the key factors of Burger King include:
1. Strong customer proposition
2. Well defined restaurant roll out and development process.
3. Experienced, passionate and professional management team.
Due to the lockdown worldwide because of COVID-19 the IPO now has temporarily pushed back. Burger King India is not the only company whose IPO plans have been impacted by COVID-19.