Burger King India shares surge 125% above IPO price
Burger King India shares surge 125% above IPO price
December 14, 2020 Authorbaji55
Burger King India's shares opened at 112.5 rupees ($1.53) per share on their first day of
trading in Mumbai on Monday, almost double the IPO price of 60 rupees ($1.53) per share (about
80 cents). Later, the stock shot up still further, closing at 135 rupees ($1.84).
In the IPO, the company, which owns the exclusive rights to launch and run Burger King restaurants in Asia's second-most populous country after China, raised 8.1 billion rupees (approximately $110 million).
It opened its first outlet in India six years ago, and according to a stock exchange filing, has since opened nearly 270 restaurants nationwide.
By the end of next year, Burger King India plans to use some of the funds to expand its network to approximately 300 restaurants and is targeting at least 700 locations by the end of 2026.
But stiff competition is facing the chain. Many Western fast-food chains, including McDonald's, KFC, Domino's and Subway, are vying to draw customers in India.
Wendy's declared this month that it will expand more in-depth into the world, with plans to open 150 new outlets and 250 cloud kitchens, or delivery-only facilities that make food.
For global fast-food chains, India is becoming a significant battlefield. According to Euromonitor International, the local market for fast food and takeaway joints in 2019 was almost $4.6 billion. The company's projects could jump to $5.6 billion by 2024.
Although Burger King was considered to join the country late compared to McDonald's," according to researchers at Euromonitor, the burger chain later stood out by expanding its scope and keeping its meals affordable.
It has also changed its products based on local tastes, like other fast-food chains.
In India, for instance, Burger King India said in a filing that we do not offer beef or pork products in our restaurants," "[And] of the 18 burgers that we have developed specifically for the Indian market, seven are vegetarian burgers."
In the IPO, the company, which owns the exclusive rights to launch and run Burger King restaurants in Asia's second-most populous country after China, raised 8.1 billion rupees (approximately $110 million).
It opened its first outlet in India six years ago, and according to a stock exchange filing, has since opened nearly 270 restaurants nationwide.
By the end of next year, Burger King India plans to use some of the funds to expand its network to approximately 300 restaurants and is targeting at least 700 locations by the end of 2026.
But stiff competition is facing the chain. Many Western fast-food chains, including McDonald's, KFC, Domino's and Subway, are vying to draw customers in India.
Wendy's declared this month that it will expand more in-depth into the world, with plans to open 150 new outlets and 250 cloud kitchens, or delivery-only facilities that make food.
For global fast-food chains, India is becoming a significant battlefield. According to Euromonitor International, the local market for fast food and takeaway joints in 2019 was almost $4.6 billion. The company's projects could jump to $5.6 billion by 2024.
Although Burger King was considered to join the country late compared to McDonald's," according to researchers at Euromonitor, the burger chain later stood out by expanding its scope and keeping its meals affordable.
It has also changed its products based on local tastes, like other fast-food chains.
In India, for instance, Burger King India said in a filing that we do not offer beef or pork products in our restaurants," "[And] of the 18 burgers that we have developed specifically for the Indian market, seven are vegetarian burgers."