Shares of Burger King India were locked in the 10% lower circuit limit at Rs 179.35 on BSE on Thursday as investors posted profits. The stock fell 18 percent from its intraday high of Rs 219.15.
As of 2:28 pm, a total of 34 million shares, representing nearly 9% of Burger King India’s total share capital, changed hands to NSE and BSE. There were pending sell orders totaling 4 million shares on the exchanges, the data shows.
Quick Service Restaurant (QSR) shares reached a new high of Rs 219.15 on BSE in morning trading, a 59% increase from Monday’s listing. On December 14, the stock closed at Rs 138, posting a 130% premium on the issue price of Rs 60 on BSE. With today’s intraday gain, the stock has risen up to 265% from the issue price.
The post-listing equity model presented by Burger King India reveals that foreign portfolio investors held 11.36% of the stake in the company, followed by mutual funds (10.10%), individual shareholders (8, 22%) and financial institutions and banks (3.21%).
Among others, the overseas companies held 9.58% stake and Amansa Investments held 7.39% stake in the company, the data shows.
The subsidiary of US-based fast-food chain Burger King is one of the fastest growing international QSR chains in India. It has received a massive response to its IPO which has been subscribed in excess of 157 times.
Burger King India reported losses in FY18, FY19, FY20 and H1FY21, leading to negative retained earnings of Rs 462 in H1FY21. This resulted in the erosion of a substantial part of its other capital.
“A premium over 90% represents a significant listing gain. However, the company only holds a 5% market share and has been making losses for a while. And even though they have massive expansion plans to open 700 restaurants by December. 2026, one would need profits to run it. Also, if they expand, their losses are likely to increase. Therefore, we believe, the company is unlikely to make any profits in the next couple of years. And you should book the listing gains and exit. , “AK Prabhakar, head of research at IDBI Capital, said Monday after Burger King India’s stellar debut. CLICK HERE TO READ THE COMPLETE REPORT