What’s the news?
Burger King's Stock Market Debut Becomes Biggest Since 2017
What does this mean?
Burger King India Ltd. surged 131% on listing day. The Rs 810-crore IPO of Burger King got a robust response from investors earlier this month, getting fully subscribed within a few hours of opening. The IPO, priced at Rs 59 – 60, was subscribed over 156 times. Burger King's market debut on December 14 was best since 2017. With restaurants open for business post-lockdown and vaccines in sight, investors are betting that customers will soon be thronging fast-food chains.
The fast-food chain’s IPO also benefitted from several other factors like strong brand positioning, robust store expansion plans and the bright growth prospects of the quick service restaurant (QSR) industry in India. QSR market is broadly categorized into Food & Beverages segments with Food category holding the majority share in the market.
This industry is expected to show robust growth due to increasing urbanization, rapid expansion in food delivery services, a growing number of dual-income families and rising disposable income in the country.
Burger King launched in India in 2015 and now it has 268 restaurants across 57 cities. It has about 5% market share in the quick-service restaurant industry which is expected to hit revenues of 348 billion rupees by 2025. Another company that has grown with the sector is condiment supplier Mrs Bector’s Food, which is due to have its market debut this week.
How does this matter to you?
While there is no direct impact on your wealth, this goes to show the increasing appetite for growth themes among the investing public.