- November 5, 2019 / 5 min readThe QSR chain is looking to use Rs 290 crore of the fresh capital to launch new restaurants in India.
Burger King India has filed its draft prospectus for an initial public offering (IPO) with markets regulator, Securities and Exchange Board of India (SEBI). The IPO will be a combination of fresh issue and offer for sale.
Through the IPO, the burger chain is planning to raise Rs 400 crore as fresh capital while its promoter, QSR Asia Pte Ltd, will partially exit via an offer for sale of 6 crore equity shares.
A person directly aware of the matter said, “The total offer is expected to be of Rs 1,000 crore, of which the secondary component will be about Rs 600 crore through which all its shareholders will exit partially.”
The QSR chain is looking to use Rs 290 crore of the fresh capital to launch new restaurants in India. It is eyeing at having about 325 restaurants, including sub-franchised outlets by December 31, 2020.
The company said in its draft prospectus, “We also intend to open restaurants in new areas and markets where we believe there is strong potential for growth and in addition to taking advantage of the growing online delivery market, including through engagement with delivery aggregators.”
“This strategy will also help us to efficiently manage our supply chain due to the increased reach and density of our network and the proximity of our restaurants to each other and to the distribution centres of our third-party distributor,” it further stated.
In India, Burger King has 216 company-owned restaurants and eight sub-franchised restaurants across 47 cities, including Delhi-NCR, Mumbai, Pune, Chennai, Hyderabad, Bengaluru, Chandigarh, Ludhiana, Amritsar and Kochi.
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