Burger King India, a significant participant within the home fast service restaurant (QSR) house, will file a doc for an preliminary public provide (IPO) this week with the Securities and Exchange Board of India (Sebi), mentioned folks with direct data of the event.
The situation will comprise a secondary share sale price Rs 600 crore by personal fairness main Everstone Capital and recent fundraising price Rs 400 crore, which might be used to gasoline the burger chain’s enlargement plan.
Assuming the regulatory approval course of takes the standard time, Burger King India would record early subsequent 12 months, becoming a member of rivals Jubilant FoodWorks (operator of the Domino’s Pizza chain) and Westlife Development (grasp franchisee of McDonald’s within the western and southern markets) in going public. Typically, Sebi takes between 4 and 6 weeks to vet and clear an IPO doc.
Everstone owns and operates Burger King’s branded eating places throughout India and Indonesia, as a part of its meals and beverage Asia portfolio. Everstone has invested in additional than 30 portfolio corporations within the client and consumer-led sectors throughout India and Southeast Asia.
Investment bankers mentioned taking Burger King India public was a part of Everstone’s technique to liquidate its funding. In May, Everstone-backed non-banking monetary firm IndoStar Capital Finance had raised Rs 1,844 crore via an IPO. In 2017, the PE agency’s schooling sector-focused publishing firm S. Chand and Co bought listed in a Rs 729-crore IPO. An electronic mail despatched to Everstone searching for remark remained unanswered.
Edelweiss, Kotak Mahindra Capital, JM Financial, and CLSA are the funding bankers managing the Burger King IPO.
Market gamers mentioned Burger King India might command engaging valuations, given the investor desire for consumer-oriented manufacturers. Also, the listed QSR gamers commerce at lofty price-to-earnings multiples. Jubilant Foodworks now trades at 51 occasions its estimated one-year ahead earnings.
Industry gamers mentioned the Burger King IPO might infuse life into the moribund main market. According to Prime Database, solely 13 corporations had filed for IPO paperwork in this calendar 12 months, 45 per cent decrease than within the corresponding interval final 12 months. Even the entire quantity raised via IPOs has shrunk to Rs 10,717 crore in 2019, a 3rd of the Rs 30,959 crore raised within the earlier 12 months. However, most corporations which have listed this 12 months have carried out nicely within the secondary market.