Burger King allotment status likely today; know what firm will do with money

Burger King allotment status today! Yes, the subscription announcement is expected to happen today and all those who have invested in the Burger King IPO should look out for the same. Fresh issue of shares via Burger King IPO is approximately Rs 450 cr which will be used to open new stores and to cut the debt of the company. The Rs 810 cr IPO is hugely oversubscribed and the retail investors are extremely excited about the listing. Investors who get the Burger King allotment are likely to see good appreciation on listing day. The price band of the issue was fixed at Rs 59-60 per share.

Burger King IPO evoked an oversubscription of nearly 157 times. The retail individual investors segment of the IPO was subscribed over 68 times while the portion meant for qualified institutional buyers (QIBs) was subscribed close to 87 times and non-institutional investors 354 times. The Burger King IPO included a fresh issue of shares worth Rs 450 crore. 

Investors can check the allotment status on https://linkintime.co.in/MIPO/Ipoallotment.html.  

Many Analysts think that the valuations of Burger King are cheap compared to 10.4x P/Sales and 6.32x for Jubilant Foodworks and Westlife Development.  

Valuation and Outlook: 

Burger King India Limited (BKIL) is one of the fastest-growing international Quick Service Restaurants (QSR) chains in India with 261 stores as of Sept 20 (the first store was opened in Nov 2014). On the operational front, the company’s revenue grew by 2.2x over FY18-FY20 to Rs 8412 mn in FY2020. Moreover, the company aims to have 370 stores by the end of Dec 2022 (700 stores by Dec 2026).On the valuation front, At the upper price band, the company is valued at 23.7x EV/ EBITDA considering the diluted equity shares which looks attractive compared to its listed peers (i.e Westlife development - 37x and Jubilant Foodworks - 38.5x) based on FY20 numbers. Considering its robust franchisee model, increasing market and strong store expansion plans would enable the company to improve its growth prospects in the upcoming years.  

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 US territories as of Sept 30, 2020.