Burger King shares on Thursday were locked in 10% lower circuit today with prices fall to Rs 179.35 on the Bombay Stock Exchange (BSE). The share price sharply fell in the afternoon deals today after surging for the last three days.
The company’s shares had hit 10% upper circuit of Rs ₹219 in the earlier sessions. The recently listed stock, after more than doubling in price on market debut on Monday, had hit the upper circuit in the previous two session.
The company’s market capitalisation has also fallen to Rs 6,844.98 crore from Rs 8,363.96 crore in the morning.
Experts believe, the rally in Burger King India shares was beyond expectations, and the stock became much more expensive above Rs 200 levels.
Burger King India made stock market debut earlier this week with 92 per cent premium over the issue price of Rs 60 apiece. At the current level, Burger King shares are up 55 per cent from the listing price of Rs 115.35 per share, and 199 per cent up from the IPO price. Burger King India’s Rs 810-crore initial public offer was subscribed a massive 156.65 times during the three-day bidding process. During the IPO process, most of the research and brokerage firms had recommended to ‘subscribe’ to Burger King India IPO for the listing gains.
Out of the 12 IPOs that the stock markets witnessed so far this year, Burger King India is among the top four IPOs. According to the industry experts, The listing day high of 135 may be tested soon. Below 135 one should not hold it in the portfolio.
