Fast-food chain Burger King India Ltd, controlled by private equity firm Everstone Capital, made a spectacular debut on stock exchanges Monday as its shares more than doubled on listing.
Shares of the company began trading at Rs 115.35 apiece on the BSE compared with the initial public offering price of Rs 60 each, stock-exchange data showed.
The shares touched a low of Rs 108.40 each and closed at their highest level of Rs 138.40 apiece, implying a gain of 2.3 times on the first day of trade. This gives the company a market valuation of Rs 5,282 crore.
The BSE’s 30-stock benchmark Sensex higher another record peak on Monday before closing 0.34% higher at 46,253.46.
The burger chain’s strong debut comes after its IPO was subscribed 157 times with investors across categories lining up to bid for its shares. The IPO was fully covered within a few hours of the issue opening earlier this month.
Ahead of the IPO, Burger King India raised Rs 364.5 crore ($49.6 million) from anchor investors including Singapore sovereign wealth fund GIC Pte Ltd.
Burger King India raised Rs 450 crore in fresh capital via the IPO while Everstone sold shares worth Rs 360 crore. Everstone also sold more stake in Burger King in off-market deals in the days leading up to the IPO. Its stake will dilute to roughly 53% after accounting for fresh shares in the offering as against 94.43% stake it held earlier.
Burger King India owns the rights to develop, establish, operate and franchise Burger King-branded restaurants in the South Asian nation.
In the US, the brand is owned by Burger King Corp, a subsidiary of Restaurant Brands International Inc., which holds a portfolio of fast-food brands that are recognised around the world and that also include Popeyes and Tim Hortons.
The Burger King brand is the second-largest burger brand globally as measured by the total number of restaurants, with a global network of over 18,000 restaurants in more than 100 countries and the US at the end of June 2019.
In India, it operates through a total of 239 restaurants including eight sub-franchised restaurants.