Burger King India files IPO papers with Sebi, fresh issue size increased to Rs 542 crore

Burger King India, one of the fastest growing quick service restaurant chains in India, has filed addendum to the draft red herring prospectus with the capital markets regulator, Securities and Exchange Board of India (Sebi).

As per the addendum, the fresh issue size has been increased to Rs 600 crore from Rs 400 crore in November 2019 when it had filed DRHP.

Of the total fresh issue, the company has reserved Rs 150 crore towards pre-IPO placement. Of which, company has undertaken a pre-IPO placement by way of a rights issue of 1.32 crore equity shares to promoter selling shareholder for cash at a price of Rs 44 per share aggregating to Rs 58.08 crore.

With this, the fresh issue size of up to Rs 600 crore has been reduced to Rs 541.92 crore.

Company in its addendum mentioned that it may consider undertaking a pre-IPO placement of the balance amount of up to Rs 91.92 crore, at its discretion, prior to filing of the red herring prospectus with the RoC. Hence if that takes place then the issue size could be reduced to Rs 450 crore.

As per the current addendum, the IPO consists a fresh issue of Rs 541.92 crore and an offer for sale of 6 crore equity shares by promoter.

The company would utilise fresh issue proceeds for funding roll out of new company-owned Burger King Restaurants; and general corporate purposes.

Under the Master Franchise and Development Agreement, company is required to develop and open at least 700 restaurants (including Company-owned Burger King Restaurants and Sub-Franchised Burger King Restaurants) by December 31, 2026, which has recently been extended by one year from December 31, 2025 due to the COVID-19 crisis.

As per the DRHP filed in November 2019, promoter QSR Asia Pte Ltd held 99.39 percent equity stake in Burger King.

Kotak Mahindra Capital Company, CLSA India, Edelweiss Financial Services and JM Financial are the book running lead managers to the isssue.