Burger King India seeks US$56m in IPO
Its local operator plans to have 325 stores by end-2020.
Burger King in India has filed for a local initial public offering (IPO) to raise up to 4 billion rupees ($56.6m), in an attempt to capitalise on the growing popularity of international chains in the country.
According to the Burger King India Ltd’s IPO papers, use 2.9 billion rupees of the money raised will be used to open new restaurants. The Whopper burger maker plans to have 325 stores by December 31, 2020.
The issue includes an offer for sale of up to 60 million equity shares by QSR Asia PTE, which owns 99% of the Indian company.
The company did not disclose pricing details.
(Also read: Burger King India clinched 66% sales growth in FY2019 due to “focused” expansion: analyst)
Private equity firm Everstone Capital, which operates the chain in India, is considering a private placement of shares worth 1.5 billion rupees ahead of the IPO, according to the draft red herring prospectus.
Burger King India plans to list with the Bombay Stock Exchange as well as the National Stock Exchange.
In the year ended March 2019, Burger King India’s revenue from operations rose 67% to 6.33 billion rupees (US$89.4m). Its loss narrowed to 382.8 million rupees in the same period from 822.3 million rupees the year before.
Kotak Mahindra Capital, CLSA India, Edelweiss Financial Services and JM Financial are the lead managers of the IPO.
Everstone reportedly eyeing exit from BK Indonesia
In Indonesia, meanwhile, Everstone is reportedly eyeing an exit from Sari Burger Indonesia (SBI), the master franchise owner of Burger King in the country.
Citing three sources with knowledge of the matter, DealStreetAsia reported that the private equity specialist has had informal talks with banks and potential advisers, including a Singapore-based firm, since early this year.
Photo credit: Burger King India Facebook
