Quick restaurant chain Burger King is expected to witness a strong debut on December 14 as shares traded at a 75 percent premium in the grey market on December 11.
In absolute terms, shares traded at a premium of Rs 44-45 in the grey market against the final issue price of Rs 60, as per the data available with the IPO Central and IPO Watch websites.
In fact, this premium in the grey market jumped significantly since the last week. It was available at a premium of Rs 20-25 per share before the IPO opening and at Rs 30-35 per share after the closing of IPO.
The overwhelming response to the public issue and healthy financials of the company seem to be the reason for the strong premium in the grey market.
The Rs 810-crore public offer, which was open during December 2-4 period, was subscribed 156.65 times. The portion set aside for retail investors had seen a subscription of 68.15 times, qualified institutional buyers' portion was at 86.64 times and non-institutional investors' portion was at 354.11 times.
The issue consists of a fresh issue of Rs 450 crore and an offer for sale of 6 crore shares by promoter QSR Asia.
Burger King is the second largest burger brand globally with 261 restaurants at the end of September 2020. It aims to increase the number of restaurants to 700 by the end of December 2026.
The company plans to use some of the IPO proceeds to repay its debt and for expansion.