Burger King's IPO Investors Tripled Their Money In Three Days.

Burger King's IPO Investors Tripled Their Money In Three Days.
Burger King's IPO Investors Tripled Their Money In Three Days.

Introduction.

Burger King's stock is continuously making investors king. In three days, its stock has given triple returns to investors. However, most of the shares were sold in the listing by investors who bought it in the IPO.

1. IPO came at 60 rupees.

Let us know that this share was listed with an increase of 92% in initial public offer (IPO) for 60 rupees. After being listed at Rs 115 on Monday, the stock had once gone up to Rs 108, but in a few hours the same day the stock reached Rs 140. The stock has tripled in the last three days. The stock reached Rs 199 with an upper circuit of 19.99% in the first hour on Wednesday. This share has increased three times the issue price.

2. Speed may stay further.

Analysts say that this stock will continue to rise steadily. It was a low-value IPO. It raised 810 crore rupees from the market. It was 156 times full. Its performance in the first week of listing has been tremendous. Investors have become rich. Investors who would have bought this stock on the first day of listing have also earned double profits.

3. Valuation still fair.

According to analysts, there is no doubt about its valuation. Although its valuation is expensive compared to jubilant food, this stock will continue to be upward. Jubilant also had strong listings in the market. Since liquidity is high, Burger King shares are booming. QIBs accounted for 75% of the IPO, while High Networth Individuals (HNIs) accounted for 15% and Retail had 10%.

4. The only Franchisee in India.

Burger King India of the Burger King brand is the only franchisee in India. It also sets up, operates and franchises the store. Its master franchise arrangement allows it to use the Burger King brand. It opened its first restaurant in November 2014. It currently has 261 restaurants. These are in 57 cities and 17 states. According to analysts, there is good demand for its shares and it will continue to gain momentum over the next three-four quarters.

5. Jubilant Food is the largest.

Jubilant Food (Domino's Pizza) has the largest market share in India. It holds a 21% stake in Quick Service Restaurant (QSR) in FY 2020. While McDonald's has 11 and KFC has a 10% stake. Subway has a 6% stake. Burger King owns a 5% stake. Burger King is going to increase its number of outlets to 700.

6. 56.3% Growth.

Talking about the growth of Burger King sales, it has grown by 56.3% during FY 2016-20. Nearly half of its total stores are in northern India. While 26% of the stores are in Western India and 21% of the stores are in Southern India. Its major competitive company is Mac Donald. It has a total of 481 outlets. 38% of its outlets are in Western India. 32% is in Northern India. KFC has 454 outlets. It has 29% of its outlets in northern India and 40% of its outlets in southern India. There are 14% outlets in Western India.

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