Burger King India’s Rs 810 crore preliminary public providing (IPO) will open for bidding on December 2 and can stay open for 3 days, till December 4. The fast service restaurant chain has fastened the difficulty worth within the worth band of Rs 59-60 per share. The shares are more likely to be listed on the bourses on December 14. (Also Read: Burger King India IPO To Open Next Week; Price Band Set At Rs 59-60/Share)
The Burger King IPO includes recent subject of fairness shares price Rs 450 crore and a suggestion on the market of Rs 360 crore by the promoter QSR Asia. The firm has already raised Rs 91.92 crore from Amansa Investments in a pre-IPO placement, at a worth of Rs 58.50 per share.
Retail bids for the general public providing will be positioned for a minimal one lot of 250 fairness shares and in multiples thereafter, as much as 13 heaps.
Burger King IPO: Should You Invest?
“At upper price band of Rs 60, the IPO is valued at price to sales (P/S) ratio of 2.7 times based on FY20 sales, compared to peers like Jubilant FoodWorks (8.4 times) and West Life Development (4.4 times). Also, on per store basis, the company’s valuation (market cap/total stores) stands at Rs 8.8 crore, compared to Jubilant FoodWorks’ (Rs 26.2 crore) and Westlife (Rs 23.8 crore). The valuation seems reasonable when compared to peers,” brokerage agency Anand Rathi stated in a analysis report.
“While the COVID-19 crisis have impacted short term growth, we believe the company remains well placed for long term growth, given its strong brand position, diverse food offerings, well established supply chain, aggressive expansion plans, cost management efforts and benefit from the gradual recovery in the QSR industry post COVID. As such, we recommend subscribe to this IPO,” Anand rathi added.