Continuing their roller coaster ride from Monday’s listing, Burger King India shares today were stuck in a 10% lower circuit for the second consecutive day. Shares fell to ₹161.45 on BSE. On the day of the listing, it jumped 125% from the initial public offering (IPO) price of ₹60 each. Then, over the next two days, they were stuck in the top 20% circuit before seeing profit taking.
Analysts attributed the sudden drop in Burger King shares to posting earnings after the steep rise from the share price. Despite the two-day drop, Burger King India shares were up 169% from the IPO issue price, with a market cap at ₹6,161.81 crore.
Shares of as Westlife Development Limited, which owns the McDonalds master franchise in West and South India, fell 3% to ₹424.45 today.
Even broader markets have seen some profit taking today. The mid cap and small cap BSE indices fell by 0.7% and 0.8% respectively.
Burger King India’s ₹The 810 crore IPO was signed a whopping 156.65 times earlier this month. The fast-service restaurant chain currently operates 268 stores in India and of these eight are franchises, located mainly in airports, with the rest owned by the company.
Mirroring the massive investor response to Burger King’s IPO, Mrs Bectors Food Specialties’ initial public offering was underwritten a whopping 198 times on the last day of subscription on Thursday. Mrs Bectors Food Specialties IPO was oversubscribed within hours of subscription opening on Tuesday.
After Burger King India, this is the second IPO this month to have received the subscription subscription within hours of opening to the public subscription.
Ms. Bectors Food’s IPO received offers for 2,62,10,42,200 shares versus 1,32,36,211 shares on offer, as per data available with NSE.
The Qualified Institutional Buyers (QIB) category was subscribed 176.85 times, non-institutional investors 620.86 times and individual retail investors (RII) 29.28 times. (With agency input)