Burger King India, the arm of US-based quick service restaurant (QSR) chain, on Tuesday raised Rs 364.5 crore from anchor investors ahead of its initial public offering (IPO) on December 2.
"The IPO committee of the board of directors of the company vide resolution on December 1, 2020, and the promoter selling shareholder in consultation with the book running lead managers or BRLMs have finalized allocation of 6,07,50,000 equity shares in aggregate, to anchor investors at the anchor investor allocation price of Rs 60 per equity share," according to a BSE circular.
Anchor investors who subscribed to the issue were Government of Singapore, Sundaram Mutual Fund, SBI Mutual Fund, Integrated Core Strategies Asia Pte Ltd, HDFC Trustee Company and ICICI Prudential Mutual Fund.
This is the 13th major IPO to hit Dalal Street this year. The fast food chain plans to raise Rs 810 crore to fund expansion and pare debt.
Currently, the chain operates 268 stores, of which eight are franchises mainly located at airports and the rest are company-owned in India.
The initial public offer (IPO) comprises a fresh issue of Rs 450 crore and an offer for sale by the promoter entity, QSR Asia Pte Ltd, of 6 crore shares worth Rs 360 crore at the upper end of the band. The company will not receive any proceeds from the offer for sale. The OFS proceeds will go to the promoters.
Post allotment, shares will be listed on BSE and NSE. Burger King listing is likely by December 14. The issue constitutes 35.37% of the post issue paid-up capital of the company.
Burger King India conducted the pre-IPO placement of Rs 150 crore through a rights issue of 1.32 lakh shares at Rs 44 each (amounting to Rs 58 crore) and preferential allotment of 1.57 crore shares at a price of Rs 58.50 to Amansa Investments Limited, amounting to Rs 92 crore.
Burger King India Limited (BKIL), the national master franchisee of the Burger King brand in the country, is one of the fastest-growing international Quick Service Restaurants (QSR) chains in India with 261 stores as of September 20. BKIL has a 5% market share in India's Rs 34,800 crore QSR market.