Burger King IPO may evoke lukewarm response
Mumbai : Burger King IPO may have lukewarm response from the market as Jains and trading communities are not likely to participate in it as it deals with non-veg food.
Burger King is the India's fastest growing quick service restaurant and stands only after McDonald when it comes to garnering business in India.Burger King IPO will start on December 2 to conclude on December 4. The Singapore-based firm is likely to be listed on BSE and NSE both on 11 -12 December.
''All the Jain's, Hindus and people who believe in non-violence and against slaughtering and killing of innocent animals should avoid this IPO. You and me can't stop the IPO but at least absolve yourself being part of the slaughter and cruelty. Use your discretion and avoid this IPO for few bucks of earning and profit," says an advisory which has gone viral on social media.
The brand has 216 Burger-King restaurants and 8 sub-franchised Burger King restaurants across the country. QSR Asia Pvt Ltd is the promoter of the company. The net proceed from the IPO, having a size of Rs 810 crore, will be used towards financing the roll-out of new company-owned Burger King restaurants and meet the general corporate purposes.
Interestingly, similar issues had cropped up in the past when the non-veg food companies like Dominos, Venky's Chicken and Jubilant Food had brought their IPOs. In spite of this kind of rumour resulting in Jain and trading communities staying away from their IPOs, they did very well on the stock exchanges as the overseas investors evinced interest in them, sources said.
The price band fixed for Burger King IPO at Rs 59 to Rs 60 per equity share of face value of Rs 10 each. Kotak Mahindra Capital Company, CLSA India Private, Edelweiss Financial Services and JM Financial are the Book Running Lead Managers to the Offer, a company statement said.