The initial public offering of Burger King, one of the fastest growing quick service restaurant chains in India with 268 outlets, turned out to be the third issue in the calendar year 2020 to cross the subscription mark of 150 times.
With a subscription of 156.6 times, it has received the second highest subscription in the current year after Mazagon Dock Shipbuilders.
Burger King India targets to open 700 restaurants by December 2026.
The Rs 810-crore IPO was subscribed 156.6 times overall during December 2-4 as it received bids for 1,166 crore equity shares against offer size of 7.44 crore equity shares (excluding anchor book portion).
The strong interest in the issue was owing to attractive valuations, strong brand positioning, healthy financial prospects, expected robust store expansion plans of the quick service restaurant industry in India.
The state-owned defence company, Mazagon Dock Shipbuilders' Rs 443-crore IPO had seen the highest subscription in 2020 at 157.4 times. The issue opened during September 29-October 1.
The third IPO that received strong subscription was Happiest Minds Technologies, the digital transformation IT consulting & services company founded by Ashok Soota in 2011. The 700-crore public issue witnessed 150.98 times subscription during September 7-9.
Chemcon Speciality Chemicals IPO also received healthy response from investors, getting 149.3 times subscription during September 21-23, followed by Rossari Biotech and Route Mobile IPOs which had subscribed over 70 times.
Equitas Small Finance Bank, Gland Pharma and UTI AMC witnessed the lowest subscription this year, around 2 times each.
Overall, the year is turning out to be a strong one for primary market so far, though April-June period was a weak period due to COVID-led lockdown. After SBI Card IPO, the primary market picked up momentum in July with the easing of lockdown measures.
Burger King was the fourteenth IPO this year and more than Rs 30,000 crore has been raised by fourteen companies through IPOs.
Earlier reports indicated that there 2-3 more companies are in a position to launch IPOs, but there is no confirmation yet. Given the ample liquidity available in the market and hope of buoyancy in the market in coming months, experts feel the same may be mirrored in the primary market.
"Kalyan Jewellers, Sarvoday Small Finance Bank, ESAF Small Finance Bank, Nazara Technologies, Burger King, Antony Waste Management and RailTel Corp could launch IPOs in December 2020," Prashanth Tapse, AVP Research at Mehta Equities told Moneycontrol. Of which, Burger King IPO is already done.Reports indicated that Mrs. Bectors Food Specialities, Indian Railway Finance Corporation etc could also be launched in December-January.