The Rs 810-crore initial public offering (IPO) of Burger King India Ltd, which received a huge oversubscription, is likely to be listed on the exchanges early next week.
The IPO evoked an oversubscription of 157 times. The retail individual investors segment of the IPO was subscribed over 68 times while the portion meant for qualified institutional buyers (QIBs) was subscribed close to 87 times and non-institutional investors 354 times. The IPO included a fresh issue of shares worth Rs 450 crore. Burger King India plans to use proceeds to open stores and cut debt.
Investors who don’t get the allotment can pick up the shares when they witness correction after listing on the bourses. Investors can check the allotment status on https://linkintime.co.in/MIPO/Ipoallotment.html.
The shares were quoting at a premium of 70-75 per cent in the unofficial grey market. Investors who get the allotment are likely to see good appreciation on listing day. The question is: should they hold or book profits? At 2.7x P/Sales (price to sales ratio), it is cheap compared to 10.4x P/Sales and 6.32x for Jubilant Foodworks and Westlife Development, said an analyst.
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