Burger King IPO Is It Worth Investing or Not-getinstartup

Hey everyone!  You all have heard about the success stories from rags to riches in the stock market and for once may be fascinated by the beauty of the stock market and want to try it out but because of the risk factor, a stock says Burger King IPO comes with you never give it a shot. Today in this article we have presented you a deep analysis of one such stock which is Burger King IPO that not only allow you to get a taste of the stock market but also provide a guaranteed return with minimum risk factor as the Burger King IPO program is very trusted and they are an overgrowing fast-food chain company.

Before learning about Burger King IPO, we need to have some knowledge about Stock Market and IPO like Burger King IPO. So, let’s get started.

What is Stock Market?

The stock market is the collection of markets where the exchange of regular activities like buying, selling, and issuance of shares that are publicly held by the companies take place.

These types of financial activities are conducted through standardized formal exchanges or OVER-THE-COUNTER (OTC), marketplaces that operate under a fixed set of rules and regulations. There are multiple stock trading venues in a country or a region and other forms of securities.

In a nutshell, stock markets provide a secure and regulated environment where market participants can transact in shares and other eligible financial instruments with confidence with – to low-operational risk.

What is an IPO?

IPO stands for Initial Public Offerings (IPO). Stock Market as a primary market permit companies to issue and sell their shares to the common public for the first time through the process of IPO e.g.; Burger King IPO.

Burger King IPO Is It Worth Investing or Not-2-getinstartup

This ensures the company raises the essential monetary funds from the investors. It essentially means that a company says Burger King divides itself into several shares say 30 million shares and sells a part of those shares say 7 million shares as Burger King IPO to the common public at a price of say ₹10 per share.

What is Burger King IPO?

Burger King IPO is an IPO of 135,000,000 equity shares of the face price of ₹10 totaling up to ₹810.00 Crore. It is issued for ₹59 to ₹60 as per equity share. The min. order amount is 250 shares. The IPO starts on 2/12/2020 and ends on 4/12/2020.

IPO Dated 02/12/ 2020 to 04/12/ 2020
Type of IssueBook Built Issue IPO
Size of issued IPO135,000,000 Equity Shares of Rs.10 which totals up to Rs.810 Crore
Fresh Issue75,000,000 Equity Shares of Rs.10 which totalsup to Rs.450 Crore
Offer for Sale60,000,000 Equity Shares of Rs.10 which totalsup to Rs.360 Crore
Base Value₹ 10 per equity share
Price of IPORupees 59 toRupees60 per equity share
Market Lot250 Shares
Min Order Quantity250 Shares
Listing AtBSE, NSE

About the Company – Burger King

Burger King is that India’s quickest growing fast service restaurant chain. It’s is that the second-largest burger brand with having two hundred six Burger-King restaurants and eight Sub-Franchised Burger King restaurants.

Burger King IPO Is It Worth Investing or Not-1-getinstartup

It has a complete upright to ascertain, develop, and operate Burger King branded restaurants in the Republic of India. Its focus to serve the Indian flavor and fondness through adding new meal offerings to its product portfolio. Company set up its branches in congested areas in key metropolitan areas and cities across the country.

Strengths of Burger King

  •  Strong Customer value proposition
  • Exclusive Franchise rights in India
  • Well defined restaurant rollout plans to build out restaurants quickly
  • Experienced and professional management team.

Risks Factor

  • Health-related issues arise from food-borne illness, health epidemics, quality of food, allergy, or negative food-related incidents.
  • Certain restrictions and obligations are imposed by the franchisor on the franchisee due to the exclusive rights of Burger King India Ltd.
  •  Any failure to maintain quality control can lead to an adverse effect on the business
  • Failure to get or maintain or renew licenses, registrations, permits in a very timely manner or the least bit could have an effect on the company’s business and results of operations.

Financial Overview of Burger King India Ltd.

31-Mar-2031-Mar-1931-Mar-1831-Mar-17
Total Assets1197.71920.47730.36698.46
Total Income846.83644.13388.74234.13
Total Expenses919.01682.41470.97305.98
Profit After Tax-76.57-38.28-82.23-71.77

Summing Up

It is visible that over 4 years the profit margin coming out is very promising and this a whole showcases the brand value of Burger King and the potential of Burger King IPO. So if you want to start investing it’s the right time to invest in IPO.

Leave a Comment