Burger King India expected to hold IPO to raise cash

The company reserved up to 10 percent of the offering for retail investors and up to 75 percent for qualified institutional investors

Burger King India Ltd., the Indian branch of the popular QSR chain, is expected to hold its initial public offering (IPO) from Dec. 2 through Dec. 4. The fast-food group hopes to raise around £81,691,099 (Rs 810 crore), with shares priced between £0.60 (Rs 59) and £0.61 (Rs 60). Proceeds from the offering will go to pay down debt and open new stores, according to Bloomberg.

Shares will be listed on BSE, formerly known as the Bombay Stock Exchange, and NSE, or National Stock Exchange of India. Burger King India is owned by private equity fund Everstone Capital. The firm secured the exclusive right to open and operate Burger King-branded restaurants in India in 2013, according to Bloomberg.

As of early Wednesday, the IPO was 1.5 times subscribed. Minimum bids were 250 shares. The company reserved up to 10 percent of the offering for retail investors, up to 15 percent for non-institutional investors and up to 75 percent for qualified institutional investors, according to Mint.

Burger King India operates 268 stores in India, of which eight are franchises.

Burger King India had originally planned an IPO for March, but scrapped it due to uncertainty surrounding the emerging global pandemic that had QSRs scrambling to adapt to social distancing restrictions. While QSRs were initially hard-hit by widespread lockdowns, many began to rebound in April as restrictions loosed and alternative payment and delivery methods were employed.

Kotak Mahindra Capital Market Ltd., CLSA India Pvt. Ltd., Edelweiss Financial Services Ltd. and JM Financial Ltd. are the lead managers on the deal.