Burger King IPO likely to see about 70% gains on listing: Experts

Burger King India, which recently concluded its Rs 810-crore initial public offering, will make its debut on the stock exchanges on Monday (December 14) after receiving a strong response to its initial public offering. The company has fixed the issue price at Rs 60 per share.

The IPO, which opened for subscription from December 2, was subscribed over 156 times at a price band of Rs 59-60 per share. The initial share sale got oversubscribed within a few hours of opening for subscription on December 2. The initial public offering (IPO) received bids for 11,66,93,73,500 shares as against 7,44,91,524 shares on offer, according to the NSE update.

Considering the stellar subscription, analysts expect a bumper listing of 70-75 percent over issue price on December 14.

"Burger King is likely to give more than 70% gains. In my view, investors might look at booking partial gains at the time of listing and hold the stock and then buy it on any dips to keep the investment for a long term," Gaurav Garg, Head Research, CapitalVia Global Research Limited told Moneycontrol.

The Rs 810-crore public issue received the second-highest subscription of 156.65 times between December 2 and December 4.

"Looking at the strong subscription demand one can expect a bumper listing gain with 70-75 percent listing premium (Rs 90 - 100 plus levels) on allotment price of Rs 60. The listing premium is justified as there is a high probability of floating into the profit zone from loss once normalcy demand comes back from COVID challenges and once this happens Burger King valuations will rise and IPO price will look eye-catching," Prashanth Tapse, AVP Research at Mehta Equities told Moneycontrol.

Burger King India is among the top-3 most-subscribed IPO this year along with Happiest Minds Technologies and Mazagon Dock Shipbuilders.

The company is one of the fastest-growing international quick-service restaurants (QSR) chains in India during the first five years of their operations based on the number of restaurants. Burger King currently operates 268 stores in India and out of them, eight are franchises, mainly located at airports, and the rest are owned by the company.

(Inputs from PTI)

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