Rs 810-crore Burger King initial public supply received a robust response from investors across categories and was subscribed 156.65 occasions.
Burger King India shares rallied 16 per cent to Rs 160.55 apiece on BSE today, following a robust debut on the bourses on Monday. The stock skyrocketed almost 131 per cent from the situation cost of Rs 60 apiece in the preceding session. With today’s rally in the stock cost, Burger King India’s share cost has now zoomed 167.58 per cent from the IPO cost, even though its market place capitalisation stands at Rs 5,959.54 crore. “At current prices, valuations seem to be very stretched fundamentally. Technically, 160 remains a strong resistance. Investors are advised to book at least part profits as a sharp correction till 130-115 cannot be ruled out,” Abhijeet Ramachandran, Independent Analyst/ Co-Founder and Trainer at Tips2Trade, told TheSpuzz Online.
Listing meets expectations
Burger King India shares have been listed at 92 per cent premium more than the situation cost. Most of the analysts and brokerage firms had advised to ‘subscribe’ to the Burger King India IPO for listing gains. According to analysts at Angel Broking, Burger King India’s listing was in line with expectation as the situation was priced at a considerable discount as compared to listed peers such as Jubilant FoodWorks (Domino’s Pizza) and Westlife Development (McDonald’s).
Short term profit vs lengthy term investment
Keshav Lahoti, Associate Equity Analyst, Angel Broking Ltd, stated that brief term investors can book profit. “We advise long term investors to stay invested in the company as there is ample scope available for the company to increase its business in India,” Lahoti stated. Lahoti additional stated that in future also, the business is anticipated to achieve market place share by opening more shops as compared to the competitors. “As the store count will increase, operating leverage will kick in and the company will be able to report profit and it will lead re-rating of the multiple for the stock,” he added.
Burger King India shares listing is the fourth-most effective listing in 2020. It’s Rs 810-crore initial public supply (IPO) received a robust response from investors across categories and was subscribed 156.65 occasions. So far, Chemcon Speciality Chemicals has risen the most on the stock market place debut day, gaining 114 per cent from the situation cost, followed by Happiest Minds Technologies with 111 per cent listing gains and Route Mobile with a 104 per cent premium on listing day.