Burger King India with the aid of their master franchisee arrangement has the potential to use Burger King’s globally recognised brand name to develop its company in India.
Burger King India, a speedy-service chain, on Friday announced that that it planned to raise `810 crore by way of an initial public supplying (IPO). The concern is set to open for subscription on December 2 and will stay open till December 4. The value band per equity share is Rs 59-60.
The IPO will see the fresh issuance of shares worth Rs 450 crore at the identical time, the promoter group, QSR Asia will be supplying 60 million equity shares worth Rs 360 crore (thinking about the upper value band). The organization stated that it intends to utilise its fresh proceeds by rolling out new organization-owned Burger King restaurants by way of repayment or pre-payment of outstanding borrowings of the organization, for capital expenditure and common corporate purposes.
The book operating lead managers to the concern are Kotak Mahindra Capital Company, CLSA India, Edelweiss Financial Services, and JM Financial. The company’s shares would be listed on the NSE and BSE. Rajeev Varman, chief executive officer and complete time director, Burger King India, stated that the brand had entered India at the proper time. He stated, “This is the time where real estate is developing, the market, out-of-home eating is developing and this is the time where technology is coming with the best application in retail. I think we came in at a very good time and have a great road ahead.” He also stated that in India the footprint of QSRs is largely regional and national players are quite couple of so, there is enormous chance in the market place. According to him, the majority of the market place is unorganised and gradually moving but quickly going towards becoming far more organised.
Burger King India with the aid of their master franchisee arrangement has the potential to use Burger King’s globally recognised brand name to develop its company in India.
When compared to its competitor Jubilant Foodworks, market place authorities think that the organization is unlikely to get premium valuations, on the other hand, they see development prospective in the organization going forward. Keshav Lahoti, associate equity analyst, Angel Broking, stated, “Burger King won’t get such a premium valuation as Jubilant Foodworks as it does not have a profitability track record like Jubilant, its outlets are young and we believe majority of the Indian people prefers Jubilant – pizza over burger sold by Burger King. So looking at the valuation and the growth the company is expected to do in the future, the issue is looking attractive to us at the first look.”