(Bloomberg) -- Burger King India Ltd., owned by private equity fund Everstone Capital, is putting its planned initial public offering on hold after the country’s equities market tumbled on fears of a global economic slowdown and the spread of novel coronavirus, people familiar with the matter said.
The company decided to postpone launching the share sale after discussions with its advisers, said the people, who asked not to be identified as the information is private. The retailer initially planned to start the IPO before the end of this month, with a target to raise about 4 billion rupees ($54 million), according to a preliminary prospectus.
No final decisions have been made and the company could proceed with the IPO when market conditions improve, the people said. A representative for Everstone didn’t respond to requests for comment.
Indian stocks, along with other major benchmarks globally, tumbled as investors were spooked by the prospect that emergency fiscal and monetary packages won’t be enough to stave off a recession globally. Rossari Biotech Ltd. last week canceled its Indian IPO briefing, citing an “unfavorable” market.
SBI Cards & Payment Services Ltd. declined in its stock market debut on Monday as investor uncertainty stemming from the coronavirus pandemic cast a shadow over the listing of India’s first pure-play credit card issuer. The recent rescue of Yes Bank Ltd. has also weighed on the sentiment.
Everstone secured the exclusive rights to develop and operate Burger King branded restaurants in India in 2013, according to the prospectus. A year later, the buyout firm opened the first Burger King outlet. There were 202 Burger King restaurants across the South Asian country as of June 30.
Kotak Mahindra Capital, CLSA Ltd., Edelweiss Financial Services Ltd. and JM Financial Ltd. are the lead managers for Burger King India’s share sale.
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