The Rs. 810 crore initial public offering (IPO) of the quick-service restaurant (QSR) major, Burger King India which opened earlier on Wednesday, was subscribed more than three times on Day 1 of the bidding process. The IPO of the Indian subsidiary of the US-based fast food joint is set to continue till Friday, December 4.
The IPO received bids for 233.20 million shares against 74.49 million shares on offer, translating into 3.13 times subscription, according to data available with BSE and NSE. Exchange data showed that retail individual investors category was subscribed 15.54 times while other categories were not fully subscribed.
With a price band of Rs. 59-60 a piece, the three-day stake sale will end on 4 December. The company has already raised Rs. 364.5 crore from anchor investors.
'Indians eating out are millennials, which represent the age group from 15 to 34 years old. Burger King India's competitive position depends on their continued ability to offer products that have a strong appeal to consumers. The company tailors its menu, promotions and pricing to the Indian tastes and preferences through its customer proposition,' said Motilal Oswal Financial Services.
Burger King India currently operates 268 stores in India and out of them, eight are franchises, mainly located at airports, and the rest are owned by the company.
As per Mint, of the total stores Burger King India has, 55 per cent stores are located in malls, and 25 per cent in high street locations. Regionally, 50-55 per cent stores are located in North, 40-45 per cent in South and West, and the rest in East.
The Burger King brand is the second largest fast food burger brand globally as measured by the total number of restaurants, with a global network of over 18,675 restaurants in more than 100 countries and US territories as of September 30, 2020, Mint reported.
Benefiting from reduced competition from unorganised smaller local restaurants due to Covid related disruptions and expansion of food delivery businesses, the company is well positioned to expand its footprint in India, said ICICI Securities.
