INSUBCONTINENT EXCLUSIVE:
Burger King stock began trading at Rs 115 versus an offer price of Rs 60.Burger King India Ltd
surged 131% on its first day of trading, the latest successful debut after a spurt of technology company listings helped boost initial share
sale pipeline.The operator of Burger King-branded restaurants in India saw demand nearly 157 times more than the number of shares in its
initial public offering earlier this month
With restaurants open for business post-lockdown and vaccines on the way, investors are betting that Indians will soon be thronging fast
food chains.The stock began trading at Rs 115 versus an offer price of Rs 60 and climbed to a high of Rs 138.40 at the 3:30 p.m
The debut is the best since 2017 when Astron Paper - Board Mill Ltd
jumped 142%.Key InsightsThe company's franchisee agreement with Restaurant Brands International Inc
allows it to use the Burger King brand in India until December 31, 2039The agreement also requires Burger King India to open at least 700
restaurants by the end of 2025The 4%-5% royalty paid to Burger King is lower than the range paid by franchisees of most comparable
quick-service restaurants in India, according to the company's prospectus"We advise long term investors to stay invested in the company,"
said Keshav Lahoti, an equity analyst at Angel Broking in Mumbai, "Even after such bumper listing, there is no issue with the valuation of
In the future, we expect the company to gain market share by opening more stores compared to the competitors"In the first half of the fiscal
year ending March, revenue declined 68% year on year, and the company reported losses due to the impact of Covid-19, according to Hemang
Jani, head equity strategist at Motilal Oswal Financial Services Ltd.Get MoreBurger King India's IPO marks a broadening in the wave of
debuts late in 2020, which had become increasingly dominated by technology companiesRival Jubilant Foodworks Ltd
has seen revenue continue to erode in the quarter ended September, but not as badly as when India was under lockdown
