Ahead of their public issue opening, restaurant chain Burger King has managed to rope in Rs. 364.5 crores. The fast-food chain managed to raise the amount from 55 anchor investors in December. The company will open its IPO on Wednesday, December 2.
The IPO Committee and the promoter selling shareholders in consultation with merchant bankers have also finalized the required allocation. They have allocated 6,07,50,000 equity shares to anchor investors. The company disclosed this at its regulatory filing.
Furthermore, the company has allotted the shares to the investors at Rs. 60 per share, the higher price brand.
“Trading Members of the Exchange are hereby informed that under Anchor Investors (AIs) portion in the Public Issue of Burger King India Limited, 6,07,50,000 equity shares have been subscribed today at Rs 60 per equity share on December 1, 2020,” the company said in the filing.
The company has taken a pre-IPO placement by way of a:
(i) Rights Issue of 1,32,00,000 equity shares to the Promoter Selling Shareholder for cash at Rs. 44 per equity share. This aggregates to Rs. 58.08 crores under the resolution of the board dated May 23, 2020; and
(ii) Preferential allotment of 15,712,820 Equity Shares to AIL for cash at Rs. 58.50 per equity share. This aggregates to Rs. 91.92 crores under the resolution of the board dated November 18, 2020. This is also in consultation with the BRLMs.
The fresh issue size was up to Rs. 600 crores. This was subsequently reduced by Rs. 150 crores under the pre-IPO placement. Thus, the fresh issue is up to Rs. 450 crores.
Burger King will open their IPO from December 2 to 4.
Here are some of the investors who took part in the anchor book:
- Sundaram Mutual Fund
- ICICI Prudential
- Steinberg India Emerging Opportunities Fund
- Nippon Life India Trustee
- Valiant India Opportunities
- Aditya Birla Sun Life
- Fidelity Funds
- Eastspring Investments
- Elara India Opportunities Fund
- Integrated Core Strategies Asia Pte
- IDFC Mutual Fund
- Fidelity Investment Trust
- Monetary Authority of Singapore
- State Bank of India Magnum Global Fund
- HDFC Mutual Fund
- Amansa Holdings
On December 2, 2020, Burger King is going to open its Rs 810 crore IPO. It will then close on December 4, 2020. The Rs 810 crore issue comprises a fresh issue of Rs. 450 crore and an offer for sale (OFS) of up to 6 crore shares, totaling Rs 360 crore. The company has also fixed the price band for the issue at Rs. 59-60 per share.
This will also be open to retail investors too. Therefore, they can buy a lot of 250 shares and a maximum of 3,250 shares. The book running lead managers to the issue consists of:
- Kotak Mahindra Capital Company
- CLSA India
- Edelweiss Financial Services
- JM Financial
Moreover, Burger King will use the fresh funds for the rollout of owned Burger King restaurants, and general corporate purposes.
Presently, Burger King operates 268 stores in India. However, eight of these are located in airports and are franchises. The rest are company-owned. Approximately 4,836 people are employed by the company. These include employees at its restaurants and also at corporate office.
