IPO note – Burger King India Limited

Burger King India Limited IPO

Burger King is one of the fastest-growing QSR (quick-service restaurant) brands in India with a reach of 250+ restaurants. This is the national master franchisee of the Burger King brand in India, which is a fast-growing fast-food burger brand globally. Promotor is QSR Asia Pte Ltd incorporated in 2013 under the laws of Singapore and holds 94.34% equity shares as of the RHP filing date.
Growth of Burger King restaurants in India over the past few years is as per the below:

(Split across zones as at Sep 30th, 2020 in India. North – 131, West – 66, South – 55 and East 9)

Offer for Sale and Deployment of Net Proceeds

The company has conducted a pre-IPO placement by way of (i) rights issue of 1,32,00,000 equity shares to promotors at a cash price of Rs 44 per share aggregating to Rs 58.08 crore and (ii) preferential allotment for 1,57,12,820 equity shares to AIL at a cash price of Rs 58.5 per equity share aggregating to a number of Rs 91.92 crores. Given these actions, the size of the fresh issue has been reduced to Rs 450 Cr.

*Offer related expenses are yet to be determined but shall not exceed 25% of the net proceeds

Financial information

Condensed financial information is presented below:

Summary of Balance Sheet

  • Current ratio of approximately 0.4x is lower than the average
  • Debt / Equity ratio as at Sep 30th, 2020 of 0.91x (pre-issue)

Summary of Income Statement

  • Stable cost of materials as % of revenue from operations
  • Impacted 2020 financials due to COVID-19 pressure
    • Number of employees reduced to 4,836 in Sep 30th, 2020 from 6,141 as on Mar 31st, 2020
  • Loss-making, even before pandemic

Comparison with peers

Key international brands in India and their presence as at Sep 30th, 2020:

  • Significantly faster expansion
  • Amongst the lowest store EBITDA in QSR segment peers

Listed company comparisonQuick IPO Fact SheetConclusion ideas:

  • Currently a loss-making company with fast growth in the number of outlets
  • Company operates in a high growth segment in India
    • India has the lowest per capita expenditure on food services in urban population amongst a few large countries
  • Urbanization is on a rise in India which works in favor
  • Offer value rides on future growth in the sector resulting in revenue growth for Burger King and better margins


All the above information is based on the red herring prospectus filed by Burger King India Ltd. with the Securities and Exchange Board of India (www.sebi.gov.in). Due diligence has been taken to ensure the correctness of the information presented above. We, however, recommend the reader to validate any information before making any financial decision. Also, investment in an initial public offering (IPO) is subject to market risks and should be evaluated keeping in mind your risk profile and investment objective. The author will not be responsible for any financial loss or otherwise resulting from any action taken based on the above.


The author of this article is a senior finance professional with over fifteen years of experience and has an affinity towards the subject of personal finance and investment management. Please leave your comment or share thoughts via email at decodefinance.in@gmail.com.


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