Burger King’s India Unit Files For IPO To Fund Expansion

Burger King India Ltd. filed for an initial public offering as the local unit of American fast-food chain looks to raise cash for expanding in Asia’s third-largest economy.

The burger chain plans to raise up to Rs 400 crore by issuing fresh shares, while QSR Asia Pte. Ltd.—the 99.39 percent owner of the company—is also looking to offload 6 crore shares, according to its draft red herring prospectus. The company is yet to disclose the pricing details.

QSR Asia is indirectly backed by Everstone Capital and Ajay Kaul, former chief executive officer of Domino’s Pizza chain operator Jubilant FoodWorks Ltd.

Kotak Investment Banking, CLSA India Pvt. Ltd., Edelweiss Financial Services Ltd. and JM Financial Ltd.Jubilant Foods are bankers to the Burger King India IPO.

Burger King will use Rs 290 crore of the IPO proceeds to open new stores. The chain plans to expand from 202 outlets as of June to 325 restaurants, including sub-franchised stores, by the end of 2020, according the IPO filings. It reported a revenue of Rs 212.3 crore and a net loss of Rs 1.76 crore in the quarter ended June.

India’s Rs 4.09 lakh-crore food services market is projected to grow at an annualised rate of 10.5 percent in the next five years to touch Rs 6.75 lakh crore, the company’s DRHP said citing Technopak and NRAI India Food Services report. The quick-service segment is expected to grow at 22 percent annually.