Burger King IPO date and more: What CEO Rajeev Varman told Zee Business about issue size, expansion and growth
Burger King Chief Executive Officer Rajeev Varman said that the total size of the IPO is Rs 810 cr and it has two components - primary and secondary. The company plans to raise Rs 450 cr from the primary IPO. The secondary IPO is of 60 million shares. At a price band of Rs 59-60, the IPO size will be Rs 360 cr
Burger King Initial Public Offering (IPO): The date of public issue of this fast food chain is 2 December, 2020. Burger King IPO price band is Rs 59-60 per share. So, how much is the company planning to raise through this issue? What should the investors do? This and much more was revealed to Zee Business by Burger King Chief Executive Officer Rajeev Varman today.
Varman said that the total size of the IPO is Rs 810 cr and it has two components - primary and secondary. The company plans to raise Rs 450 cr from the primary IPO. The secondary IPO is of 60 million shares. At a price band of Rs 59-60, the IPO size will be Rs 360 cr.
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The sale of Burger King shares is by promoter QSR Asia, the CEO said. The proceeds from the primary IPO will be used to “write off” its loan of Rs 165 cr, the company took last year. The remaining money will be used to build additional restaurants, he said.
The money will also be utilised for meeting the IPO and other company expenses, he further said.
The Burger King issue will close on 4 December and the allotment of shares will take place on 9 December. The company will be listed on 14 December.
On its debt elevation which have tripled from the September 2019 levels, the CEO said that the loans were taken last year to open additional restaurants. The money has been utilised towards this, he said.
Burger King also did a rights issue where the promoters put Rs 58 cr in business. The company has sufficient cash flows.
The company intends to open 700 restaurants by December 2026.
On Losses
On the issue of losses, he said that Burger King started opening restaurants only 5 years ago (towards the end of 2014). The restaurants will gear up, going forward, he said.
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Unlockdown, demand and company operations
After a complete nationwide lockdown towards the end of March, things are opening up. Since restaurants fall in the category of essential services, they were open only for delivery purposes, he said. Takeaway and dining with social distancing has started now. Out of the 268 Burger King restaurants, 249 are open now, he further said.
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