About the Company:
Burger King India Ltd is one of the fastest growing international QSR chains in India during the first five years of our operations based on number of restaurants.
As the national master franchisee of the BURGER KING® brand in India, company has exclusive rights to develop, establish, operate and franchise Burger King branded restaurants in India.
The master franchisee arrangement provides company with the ability to use Burger King’s globally recognised brand name to grow our business in India, while leveraging the technical, marketing and operational expertise associated with the global Burger King brand.
As at September 30, 2020, Company had 261 restaurants, including eight Sub-Franchised Burger King Restaurants, across 17 states and union territories and 57 cities across India.
Burger King brand:
The globally recognised Burger King brand was founded in 1954 in the United States and is owned by Burger King Corporation, a subsidiary of Restaurant Brands International Inc., which holds a portfolio of fast food brands that are recognized around the world that include the BURGER KING®, POPEYES® and TIM HORTONS® brands.
The Burger King brand is the second largest fast food burger brand globally as measured by the total number of restaurants, with a global network of over 18,675 restaurants in more than 100 countries and U.S. territories as at September 30, 2020.
Growth in Restaurants since start of Operations:
Master Franchise and Development Agreement:
The BURGER KING® brand is the second largest fast food burger brand globally as measured by the total number of restaurants, with a global network of 18,675 restaurants in more than 100 countries and U.S. territories as at September 30, 2020.
Under the Master Franchise and Development Agreement, our Company has been granted the exclusive right to develop, establish and operate and franchise the Burger King restaurants in India.
Since opening of the first Burger King restaurants in India in November 2014, our Company has grown to a pan-India QSR chain with 261 restaurants, including seven sub-franchised restaurants, across 17 states and union territories and 57 cities across India as at September 30, 2020.
Further, under the Master Franchise and Development Agreement, Company is required to develop and open at least 700 restaurants by December 31, 2025.
Company’s master franchisee arrangement, which expires on December 31, 2039, provides us with the ability to use Burger King’s globally recognised brand name to grow our business in India, while leveraging the technical, marketing and operational expertise associated with the global Burger King.
Company also enjoys favourable royalty rates that are capped at 5% under the master franchisee arrangement.
QSR Market in India (Outlet count and by Revenue):
Management Team:
- Mr. Shivakumar Pullaya Dega (Designation: Chairman and Independent Director)
- Mr. Rajeev Varman (Designation: Chief Executive Officer and Whole Time Director)
Objectives of the Issue:
The Net Proceeds from the Fresh Issue are proposed to be utilised in the following manner:
- Funding roll out of new Company-Owned Burger King Restaurants.
- General corporate purposes.
Funding roll out of new Company-owned Burger King Restaurants:
- Company proposes to utilise a portion of the Net Proceeds i.e. Rs. 177 crores during Fiscal 2021, 2022 and 2023 towards expansion of Burger King restaurants in India.
Financials of the Company:
| (in Crores) | FY 17 | FY 18 | FY 19 | FY 20 | 30th Sept 2020 |
|---|---|---|---|---|---|
| Revenue | 234.1 | 388.7 | 644.1 | 846.8 | 151.6 |
| Net Profit | (-71.8) | (-82.2) | (-38.2) | (-76.5) | (-118.9) |
Valuation of Peer Group Companies:
| Company Name | Face Value | EPS | PE Ratio | RoNW | NAV |
|---|---|---|---|---|---|
| Burger King India Ltd | 10 | (-2.87) | N.A | (-27.8)% | 7.62 |
| Jubilant Foodworks Ltd | 10 | 24.23 | 65.02 | 25.39% | 95.45 |
| Westlife Development Ltd | 2 | 2.58 | 134.67 | 6.91% | 37.47 |
Also Read: Complete List of Upcoming IPOs
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | 2nd December 2020 |
| Issue Closes on:. | 4th December 2020 |
| Issue Price | Rs.59-60 |
| Face Value | Rs.10 |
| Minimum Lot | 250 Shares |
| Retail Category Allocation | 10% |
| Minimum Investment | Rs.15,000 |
| Issue Constitutes | 35.37% |
| Issue Size | Rs.810 cr ($108 million) |
| Market Cap | Rs. 2290 cr ($305 million) |
| Listing at | NSE & BSE |
| Equity Shares Offered (Fresh) | 7,50,00,000 |
| Equity Shares Offered (OFS) | 6,00,00,000 |
| Equity Shares Offered (Fresh + OFS) | 13,50,00,000 |
| Equity Shares Prior to the Issue | 60,66,54,605 |
| Equity Shares after the Issue | 38,16,54,605 |
Important Dates:
| Finalization of Basis of Allotment | On or Before 9th December 2020 |
| Initiation of Refunds | On or Before 10th December 2020 |
| Credit of Equity Shares: | On or Before 11th December 2020 |
| Listing Date: | On or Before 12th December 2020 |
Subscription Details: (Will be Updated)
| (Subscription-Category-Wise (no. of times) Till time : 05:00 PM) | Shares Offered | 2nd Dec | 3rd Dec | 4th Dec |
|---|---|---|---|---|
| QIB | 4,04,23,729 | 0.17 | 2.71 | 86.64 |
| NII | 2,04,40,677 | 0.71 | 3.64 | 354.1 |
| Retail | 1,36,27,118 | 15.54 | 38.16 | 68.15 |
| Employee | —- | —- | —- | —– |
| TOTAL | 7,44,91,524 | 3.13 | 9.38 | 156.6 |
IPO Valuation Parameters:
| Earnings Per Share (EPS) | Price To Earnings ratio (PE) | Return on Net Worth (RoNW) | Net Asset Value (NAV) |
|---|---|---|---|
| (-2.87) | N.A | (-27.8) | 7.62 |
| Check IPO Allotment Status: |
|---|
Link InTime Website (Click on the below Link)https://linkintime.co.in/PublicIssue/ |
| Company Contact Info: |
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| Burger King India Limited Unit Nos.1003 to 1007 10th Floor, Mittal Commercia Asan Pada Rd Chimatpada Marol, Andheri (E) Mumbai, Maharashtra 400 059 Tel: +91 22 7193 3047 Email: investor@burgerking.in Website: www.burgerkingindia.in |
| IPO Registrar Info: |
|---|
| Link Intime India Private Limited C-101, 1st Floor, 247 Park, Lal Bahadur Shastri Marg Vikhroli (West) Mumbai, Maharashtra 400 083 Tel: +91 22 4918 6200 E-mail: burgerking.ipo@linkintime.co.in Website: www.linkintime.co.in |
