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.
Burger King India’s IPO will open for subscription today.
The fast-food major is just a little over half-a-decade old, and is one of the fastest growing quick service restaurant (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.
Financially, the company is still in the rudimentary stages and has not managed to turn profitable so far. However, the rapid expansion has helped increase total income of Burger King 48.4% CAGR between financial year 2017 and 2020. “Same-store-sales growth (SSSG) stood at 12.2% and 29.2%, respectively, in fiscal year 2018 and fiscal year 2019, which also helped in achieving strong revenue growth in the past two years.
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Although the company is still not making profits, the rapid expansion that it plans could help the firm. “Considering Covid-19 as an exceptional phase for the sector, we feel that with positive advancement in vaccine development and considerable relaxation in the economic activities, it is expected to report improved financials over the period.said Choice Broking while advising investors to subscribe to the issue.
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