Burger Kind India Ltd, one of the fastest-growing quick-service restaurant chains in India, has now drafted a prospectus for an Initial Public Offering (IPO) with the market regulators and SEBI.
The IPO, a combination of fresh issue and offer for sale, looks to secure around INR 542 crore as a fresh capital with its promoter – QSR Asia Pvt Ltd, and will partially exit with the help of an offer for sale of 6 crore equity shares.
The firm, as of now, has plans to use the net proceeds from the fresh funds to roll out new restaurants in the country. It also plans to have around 700 restaurants, which includes the sub franchised outlets, by December 31, 2026, which has recently been extended by one year from December 31, 2025, due to the Pandemic.
The Coronavirus pandemic has severely affected the popular food chain. “While we cannot currently estimate the duration or future negative financial impact of the COVID-19 pandemic on our business or our sub-franchisees, we expect the negative effects to continue into the third quarter of Fiscal 2021,” the draft prospectus mentioned.
The promoter entity which includes the BK AsiaPac, F&B Singapore, RV Services Pvt, and Ajay Kau; senior director at F&B Asia Ventures as its shareholders.
The investment bank, which includes JM Financial, CLSA India, Kotak Mahindra Capital, Edelweiss Financial Services, has been appointed to advise the company on the IPO.
As of now, India, Burger King, has 261 restaurants, which include the eight sub franchised King Restaurants across the 57 cities in India, which includes Hyderabad, Chandigarh, Delhi-NCR, Mumbai, Pune, Chennai, Kochi, Amritsar, and Ludhiana, as per the draft prospectus.
The company is one of the fastest-growing international QSR Chains in India at the time of the first five years of operations based on the number of restaurants.
Previously, the company had also filed draft papers with the SEBI in the month of November 2019 to secure INR 400 crore via fresh issue of shares and an offer for sale of around six crore equity shares by the QSR Asia. It has also increased the size of the fresh issue.
The regulator has given relaxation till 31 March 2021, to companies in respect of filing of fresh offer documents in case of an increase or decrease of issue size by 50%.