Restaurant chain Burger King India shares had a strong opening premium of 92.25 per cent on the first day of trading on Monday.
The listing premium was better-than-expected given the stellar subscription and consistent strong revenue growth as well as store additions over the past more than five years of operations. The stock opened at Rs 115.35, against issue price of Rs 60 on the BSE, while on the National Stock Exchange, shares made a debut at Rs 112.50, a 87.50 percent premium over IPO price.
At 10:03 hours IST, the stock was trading at Rs 112, up 86.67 percent with volume of 36,62,957 shares on the BSE, while it was quoting at Rs 112.40, up 87.33 percent with volumes of 4,77,80,140 equity shares on the National Stock Exchange.
Analysts had expected Burger King to list at around 70-75 per cent premium over issue price, while it was also trading at 75 per cent premium in the grey market.
Burger King India raised Rs 810 crore through public issue which was subscribed 156.65 times during the December 2-4 period. The company is going to utilise issue proceeds for debt repayment and expansion.
The quick service restaurant chain has 259 owned Burger King restaurants and nine sub-franchised Burger King restaurants as per the prospectus filed with the SEBI. Burger King has a target to increase its number of restaurants to 700 by the end of December 2026.
The company recorded a 49 percent CAGR growth in revenue and 258 percent in EBITDA during FY18-FY20, backed by strong store strength in the same period, though it reported losses at PAT level.
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