Burger King
Mainboard₹810 Cr issue
+92.25%
Listing gain over issue price
Issue size
₹810 Cr
1 lot at cut-off
₹15,000
Lot size
250shares
Open
02 Dec 2020
Close
04 Dec 2020
Allotment
09 Dec 2020
Listing
14 Dec 2020
Listing performance
Issue price
₹60
Listed at
₹115.35
Listing-day close
₹138.40
Latest price
₹88.25
Close on 23 Oct 2026
Listing gain
+92.25%
Return since issue
+47.08%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 02 Dec 2020 – 04 Dec 2020
- Listing date
- 14 Dec 2020
- Face value
- ₹10 per share
- Issue price
- ₹60 per share
- Lot size
- 250 shares
- Total issue size
- ₹810 Cr
- Promoter holding
- 99.39% → 60.08% pre-issue → post-issue
- ISIN
- INE07T201019
- Registrar
- MUFG Intime India Pvt.Ltd.
- Lead managers
- CLSA India Pvt.Ltd.
- Registered office
- Unit Nos.1003 to 1007,10thFloor, Mittal Commercia,, Asan Pada Rd, Chimatpada, Marol, Andheri (E),, Mumbai, Maharashtra, 400 059, Maharashtra
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 6,07,50,000 | — | — |
Application size
Minimum 250 shares per lot, in multiples, at ₹60
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 250 | ₹15,000 |
| Retail (max) | 13 | 3,250 | ₹1,95,000 |
| S-HNI (min) | 14 | 3,500 | ₹2,10,000 |
| S-HNI (max) | 66 | 16,500 | ₹9,90,000 |
| B-HNI (min) | 67 | 16,750 | ₹10,05,000 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Shares allocated
6,07,50,000
Anchor portion
₹365 Cr
at ₹60 per share
Valuation and performance
Valuation at offer price
₹60 per share
| Metric | Pre-issue | Post-issue |
|---|
About Burger King
Burger King India Limited, incorporated on December 21, 2012, is one of the fastest growing international QSR chains in India during the first five years of operations based on number of restaurants. The company is the exclusive national master franchisee of the Burger King brand in India under a Master Franchise and Development Agreement with BK AsiaPac dated November 19, 2013. As of the date of the prospectus, the company operates 259 company-owned Burger King Restaurants and 9 sub-franchised Burger King Restaurants. The company's business model focuses on value leadership, variety, wide vegetarian offerings, taste advantage and flame grilling expertise to offer quality products tailored to Indian tastes at attractive price points. Revenue is generated from the sale of food and beverages at company-owned restaurants, as well as from franchise fees, royalties and other charges from sub-franchised restaurants.
Company Analysis
from RHPBurger King India Limited is the national master franchisee of the Burger King brand in India, operating company-owned and sub-franchised quick service restaurants (QSR) offering burgers, wraps, beverages and other food items tailored to Indian tastes and preferences.
Burger King India Limited, incorporated on December 21, 2012, is one of the fastest growing international QSR chains in India during the first five years of operations based on number of restaurants. The company is the exclusive national master franchisee of the Burger King brand in India under a Master Franchise and Development Agreement with BK AsiaPac dated November 19, 2013. As of the date of the prospectus, the company operates 259 company-owned Burger King Restaurants and 9 sub-franchised Burger King Restaurants. The company's business model focuses on value leadership, variety, wide vegetarian offerings, taste advantage and flame grilling expertise to offer quality products tailored to Indian tastes at attractive price points. Revenue is generated from the sale of food and beverages at company-owned restaurants, as well as from franchise fees, royalties and other charges from sub-franchised restaurants.
Quick Service Restaurants (QSR)Food and BeverageFranchised Restaurants
Objects of the Issue
- Funding roll out of new Company-owned Burger King restaurants - Repayment or prepayment of outstanding borrowings of the company obtained for setting up of new Company-owned Burger King Restaurants ₹1,649.79 million p.20
- Funding roll out of new Company-owned Burger King restaurants - Capital expenditure incurred for setting up of new Company-owned Burger King Restaurants ₹1,770.00 million p.20
- General corporate purposes ₹711.70 million p.20
- Funding roll out of new Company-owned Burger King Restaurants through repayment or prepayment of outstanding borrowings obtained for setting up new restaurants and capital expenditure for setting up new restaurants ₹3,419.79 million p.78
- General corporate purposes ₹711.70 million p.84
- Not specified in this document section
- —
- Expansion of restaurant network and capital expenditure As per Objects of the Offer section p.285
- General corporate purposes p.284
- Fresh Issue by the Company ₹ 4,500 million p.313
Issue Structure
- Total Issue
- ₹8,100 million
- Fresh Issue
- ₹4,500 million (75,000,000 Equity Shares)
- Offer for Sale
- ₹3,600 million (60,000,000 Equity Shares by Promoter Selling Shareholder)
- Price Band
- ₹59 to ₹60 per Equity Share
- Lot Size
- 250 Equity Shares (Bid Lot)
- Face Value
- ₹10 per Equity Share
Business Model
The company earns revenue primarily from the sale of food and beverages at company-owned restaurants. Additionally, the company generates revenue from sub-franchised restaurants through franchise fees, monthly royalty fees (ranging from 2.5% to 5% of sales), non-refundable opening fees, renewal fees, and mandatory advertising contributions (5% of company-owned restaurant sales). The company operates under a franchise model where it holds the exclusive development and operational rights for the Burger King brand in India.
Business Segments
Owned, established and operated by the company in India, serving burgers, wraps, rice, beverages, sides, snacks, shakes and desserts across different day parts including breakfast, lunch, dinner and snack times
Burger King restaurants which are licensed by the company to third parties to open and operate Burger King restaurants in India, generating revenue through franchise fees, royalties and other charges
Operations of company-owned quick-service restaurants under the Burger King brand, generating revenue from food and beverage sales
Company-owned and sub-franchised flame-grilled burger restaurants offering vegetarian and non-vegetarian food items, with value-focused menu architecture including burgers, wraps, rice bowls, beverages, sides, snacks, shakes and desserts across different day parts
Operates Burger King restaurants owned by the company across India, generating revenue from food and beverage sales
Grants franchises to sub-franchisees to operate Burger King restaurants and collects initial fees and royalties on sales
The Chief Operating Decision Maker reviews the entire operating results of the business as a whole for the purpose of making decisions about resource allocation and performance assessment. The company operates only in India and does not have any individual customer contributing more than 10% of revenue.
Operation of company-owned quick service restaurants under the Burger King brand, serving food and beverages to customers on a dine-in, delivery, and takeaway basis
Licensing of the Burger King brand to sub-franchisees who operate restaurants, with revenue from one-time initial fees and ongoing royalty income
SWOT Analysis
Strengths
- • One of the fastest-growing international QSR chains in India during first five years of operations(p.19)
- • National master franchisee of second largest fast food burger brand globally(p.19)
- • Strong customer proposition with value leadership, variety, and vegetarian offerings(p.19)
- • Significant restaurant footprint with 268 total restaurants as of Prospectus filing date(p.22)
- • Exclusive master franchise rights in India(p.80)
- • Well-defined, efficient restaurant rollout process(p.80)
- • Strong operational scale with 261 restaurants(p.80)
- • Exclusive national master franchisee rights for Burger King in India(p.124)
- • Second largest global burger brand with strong global support(p.124)
- • Fastest growing international QSR chain in India during first five years of operations(p.124)
- • Vertically managed and scalable supply chain model(p.126)
- • Flame grilling expertise unique in Indian QSR market(p.126)
- • Favorable royalty cap of 5% under master franchisee arrangement(p.125)
- • Strong regional performance awards and recognition(p.124)
- • Effective 360º technology deployment across operations(p.139)
- • Exclusive development rights in India under Master Franchise Agreement through 2039(p.142)
- • Long-term operational framework with 20-year franchise term per restaurant(p.142)
- • Award-winning franchisee with international recognition(p.152)
- • Rapid store network expansion and scale achieved(p.152)
- • Achieved EBITDA positivity and revenue growth milestone(p.152)
- • One of fastest-growing international QSR chains in India in first 5 years of operations(p.256)
- • Exclusive master franchisee rights for Burger King brand in India(p.256)
- • Globally recognised brand leveraging international expertise(p.256)
- • Localized menu catering to Indian tastes and preferences(p.256)
- • Diverse product offering with vegetarian options(p.256)
- • Rapid network expansion and scale achievement(p.261)
- • Exclusive national brand rights with operational efficiencies(p.260)
- • Global recognition and awards(p.260)
- • Scalable vertically managed supply chain infrastructure(p.264)
- • Strong revenue growth pre-COVID(p.260)
- • High gross margins and improving margins(p.282)
- • Customer value proposition and menu diversity(p.263)
- • Established franchise model with exclusive Indian territory rights(p.336)
- • Strong promoter support with significant equity contribution(p.313)
Weaknesses
- • Consistent profitability losses across multiple fiscal years(p.28)
- • Substantial negative retained earnings and equity erosion(p.28)
- • Heavy dependence on single third-party distributor for supply chain(p.29)
- • Significant outstanding rental payments to landlords(p.38)
- • Substantial employee attrition during COVID-19 period(p.40)
- • Consistent operating losses across multiple fiscal years(p.56)
- • Negative equity position deteriorating(p.55)
- • High and increasing power and fuel costs as percentage of revenue(p.41)
- • Significant dependence on related party transactions(p.43)
- • Promoter retains controlling stake post-IPO(p.47)
- • Negative credit rating outlook(p.51)
- • Group company (Harry's India) incurring losses(p.47)
- • Significant COVID-19 impact on restaurant operations and closures(p.131)
- • Substantial revenue decline in six months ended September 30, 2020(p.124)
- • Negative same-store sales growth in recent periods(p.124)
- • Sub-franchised restaurants more significantly impacted by COVID-19(p.140)
- • Reliance on single third-party distributor for supply chain(p.127)
- • Outstanding rental obligations to landlords due to COVID-19(p.141)
- • Significant employee attrition and reduction during COVID-19(p.140)
- • Significant accumulated losses and negative equity position(p.179)
- • High debt-to-equity leverage with covenant restrictions(p.143)
- • Overdue franchise payments owed to parent franchisee(p.143)
- • Dependence on single franchisee brand (Burger King) and master franchisor (BK AsiaPac)(p.145)
- • Restrictive covenants limiting shareholder autonomy and business decisions(p.147)
- • Immediate termination rights for franchisor without cure opportunity(p.143)
- • Significant accumulated losses and negative retained earnings(p.220)
- • Negative equity position as of September 30, 2020(p.220)
- • Heavy lease liability burden relative to asset base(p.221)
- • Sustained operating losses across multiple periods(p.235)
- • Dependence on promoter financial support for continuation(p.245)
- • Severe liquidity stress from COVID-19 impact(p.261)
- • Outstanding obligations to franchise partner creating default risk(p.266)
- • Dependence on single third-party distributor(p.287)
- • High operating leverage with fixed lease obligations(p.261)
- • Significant decline in operational restaurants due to COVID(p.260)
- • Employee attrition and workforce reduction(p.261)
- • Concentrated shareholder structure with promoter nomination rights(p.330)
- • Limited financial independence in CEO appointment subject to promoter approval(p.331)
Opportunities
- • Large addressable QSR market with strong growth drivers(p.19)
- • Growth in food delivery market providing expansion opportunity(p.29)
- • Planned expansion of restaurant network using IPO proceeds(p.19)
- • Regional product innovation and menu adaptation strategy(p.28)
- • Significant expansion target under Master Franchise Agreement(p.80)
- • Growing demand for western QSR culture in India(p.80)
- • Planned capital expenditure for new restaurant rollout(p.79)
- • Strengthening capital base through IPO listing(p.79)
- • Expansion into growing QSR market projected to reach ₹825 billion by Fiscal 2025(p.109)
- • Large millennial population with high eating-out frequency(p.126)
- • Growing online food delivery market opportunity(p.114)
- • Expansion opportunity in Tier II and Tier III cities(p.104)
- • Gap created by unorganized market weakness due to COVID-19 hygiene concerns(p.120)
- • Growing middle class with increasing discretionary spending(p.96)
- • Increasing urbanization and eating-out culture(p.96)
- • Plan to increase restaurant network to approximately 300 outlets by December 31, 2021(p.128)
- • Mandatory development target expansion to 700 stores by end of 2026(p.142)
- • Flexibility in menu pricing and local customization authority(p.143)
- • Sub-franchisee development model enabling asset-light expansion(p.142)
- • Support services from BK AsiaPac including marketing, product development and supply chain(p.143)
- • Minimum store opening entitlement post-termination protects ongoing operations(p.144)
- • Expand restaurant base in underpenetrated Indian QSR market(p.256)
- • Leverage global Burger King brand recognition for growth(p.256)
- • Attract price-conscious customers through value leadership positioning(p.256)
- • Massive underpenetrated Indian QSR market with growth potential(p.264)
- • Strong projected market growth in eating out sector(p.264)
- • Rapid Chain QSR penetration expansion(p.264)
- • Urbanization driving consumer demand(p.265)
- • Rising disposable income and lifestyle changes(p.264)
- • Growing food delivery aggregator ecosystem(p.265)
- • Expansion of organized retail space for restaurant growth(p.265)
- • Cluster strategy enabling further network expansion(p.260)
- • Potential for international expansion including Singapore, London and New York listings(p.335)
- • Increased FPI investment limits recently approved(p.319)
Threats
- • Severe ongoing impact of COVID-19 pandemic on operations and revenue(p.22)
- • Risk of food-borne illnesses and health epidemics damaging brand and operations(p.25)
- • Exclusive franchise dependence with termination risks(p.26)
- • Mandatory development targets with termination consequences for non-achievement(p.26)
- • Increasing competitive pressure from established QSR chains(p.39)
- • Rising labor costs and regulatory pressures(p.40)
- • Macroeconomic downturn impacting consumer discretionary spending(p.40)
- • Risks of negative publicity and brand damage from global BK operations(p.28)
- • Power supply disruptions and tariff increases(p.41)
- • Limited electricity providers and inability to find substitutes(p.41)
- • Economic slowdown in India and COVID-19 impact(p.46)
- • Unforeseen catastrophic events impacting restaurant operations(p.46)
- • Regulatory and policy environment changes(p.47)
- • Inability to accurately forecast demand(p.44)
- • Foreign ownership regulations affecting share trading(p.48)
- • Downgrade of India's sovereign debt rating(p.48)
- • Global financial instability affecting Indian markets(p.48)
- • COVID-19 pandemic duration and future financial impact uncertain(p.125)
- • High real estate costs impacting profitability(p.119)
- • Shortage of skilled staff and high attrition in food services(p.119)
- • Intense competition from established international QSR brands(p.109)
- • Fragmented market with competitive low-cost unorganized players(p.119)
- • Regulatory complexity requiring multiple licenses(p.119)
- • Dependency on delivery aggregator platforms affecting margins(p.118)
- • Intense QSR competition from major international chains(p.142)
- • Consumer demand vulnerability to macroeconomic conditions and discretionary spending(p.142)
- • Regulatory risk from Food Safety Authority and health regulations(p.148)
- • Environmental compliance obligations and pollution control requirements(p.149)
- • Franchisee trademark infringement risk with immediate termination consequences(p.146)
- • Franchisor royalty escalation and opening fee structure burden(p.142)
- • Severe impact from COVID-19 pandemic on restaurant traffic and operations(p.253)
- • Perishable inventory write-offs due to reduced customer frequencies(p.253)
- • Intense competition in QSR industry affecting market share(p.257)
- • Restrictive debt covenants limiting operational flexibility(p.257)
- • Prolonged COVID-19 impact with uncertain duration(p.260)
- • Severe revenue decline from pandemic restrictions(p.260)
- • Intense competitive pressure in QSR sector(p.265)
- • Downward pricing pressure from competition(p.265)
- • Regulatory compliance costs and strengthening regulations(p.265)
- • Macroeconomic uncertainty and consumer spending decline(p.263)
- • Delayed mall space expansion disrupting growth plans(p.265)
- • Dependency on single brand (Burger King) through franchise agreement(p.336)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| QSR Asia Pte. Ltd. | Promoter/Promoter Selling Shareholder | 85.38% | — |
| F&B Singapore | Promoter Group | Negligible | — |
| QSR Asia | Promoter | 85.38% | 52.88% |
| QSR Asia Pte. Ltd. | Promoter | 85.38% | — |
| F&B Asia Ventures (Singapore) Pte. Ltd. | Promoter of Promoter | 87.64% of QSR Asia | — |
| QSR Asia Pte. Ltd. | Holding Company | 99.44% | — |
| F&B Asia Ventures (Singapore) Pte. Ltd. | Holding Company of QSR Asia Pte. Ltd. | — | — |
| F&B Asia Ventures Ltd. (Mauritius) | Ultimate Holding Company | — | — |
| Not specifically named in this section | Promoter/Promoter Selling Shareholder | — | — |
| QSR Asia Pte. Ltd. | Promoter Selling Shareholder | — | — |
Leadership
Rajeev Varman · Chief Executive Officer and Whole Time Director
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.
Burger King IPO FAQs
What is the lot size of Burger King IPO?
The minimum lot size of Burger King IPO is 250 shares. One lot costs ₹15,000 at the cut-off price.
When does Burger King IPO open and close?
Burger King IPO opened for subscription on 02 Dec 2020 and closed on 04 Dec 2020.
What is the listing date of Burger King IPO?
Burger King IPO listed on 14 Dec 2020.