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The Burger King IPO has drawn massive interest from stock market investors in India. It was oversubscribed by 157 times on the last day of the issue subscription date on Friday.
It became the second most successful IPO of 2020, in terms of subscription, after Mazagon Dock Shipbuilders. Burger King is a quick service restaurant chain.
The ₹810 crore IPO has received bids of 11.67 billion shares against 74.49 million on offer, according stock exchange data. Reserve portion for retail investors oversubscribed 67.54 times while the portion set aside for qualified institutional investors is subscribed 86.64 times and that of high net-worth investors 354.11 times.
Burger King currently operates 268 stores in India.
The IPO had a fixed price band of ₹59-60 a share. The company will get ₹450 crore from the IPO, which it plans to use to repay its debt and for expansion plans. Existing shareholders, private equity firm Everstone and its co-investors will fetch ₹360 crore from the issue.
Anchor investors
Just ahead of the issue, Burger King India had raised ₹364.5 crore from 55 anchor investors. Among them included Fidelity Fund, Eastspring Investments India Consumer Equity Fund, Government of Singapore, AmansaHoldings, Sundaram Mutual Fund, SBI Mutual Fund, Integrated Core Strategies Asia Pte Ltd, HDFC Trustee Company and ICICI Prudential Mutual Fund.
While the basis of allotment is likely to be decided on December 9, shares may be listed on December 14, analysts said.
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