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Burger King India’s grey market appetite surges ahead of the stock debut on Monday

  • The shares of Burger King India are hovering at a premium of around ₹44-45 in the grey market— which suggests an upside of 75% over the issue price band.
  • The public issue of the quick-service restaurant (QSR) chain saw a stellar demand — making it the second most successful IPO of 2020 after Mazagon Dock shipbuilders.
  • The company is proposed to list on both stock exchanges (BSE & NSE)
  • Check out the latest news and updates on Business Insider.

The shares of the recently concluded Burger King India IPO are soaring in the grey market ahead of its listing on Monday. The company is proposed to list on both stock exchanges (BSE and NSE), and the net proceeds from IPO would be utilised to roll out new restaurants, and other corporate purposes.

The shares of Burger King India are hovering at a premium of around ₹44-45 in the grey market — which suggests an upside of 75% over the issue price band of ₹59-60.

The grey market premium is the measure of the extra amount that the market is ready to pay for a newly listed company’s shares. However, it is not an official measure of the market premium. But it is a fair indicator of demand for the shares in the market.

Stellar demand for its IPO



The public issue of the quick-service restaurant (QSR) chain saw a stellar demand — making it the second most successful IPO of 2020 after Mazagon Dock shipbuilders.

The offer was subscribed 157 times on December 4, the final day of bidding — as it received bids for 11.67 billion shares, against the 74.49 million on offer.

Burger King IndiaQualified institutional buyerNon-institutional investorsRetail individual investorTotal
IPO subscription86.64x354.11x67.41x156.52x

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What impressed investors?



New restaurant roll out on cards



The company has grown into a pan-India QSR chain with 259 company-owned Burger King Restaurants and 9 sub-franchised Burger King Restaurants.

The company has a target of 370 stores by December 2022 and 700 by 2026. It is one of the youngest and the fastest growing restaurant chains in India.

The discounted valuation



Analysts believed that compared to its other listed rivals, the IPO price band of Burger King was set at a significant discount and was an attractive issue to ‘subscribe’ for.

Marquee investors



Ahead of the IPO, the company had raised ₹364.5 crore from 55 anchor investors including ICICI Prudential, Samsung India Securities, Nippon Life, Fidelity Funds, Government of Singapore, IDFC MF, SBI MF, Monetary Authority of Singapore, among others.

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