Burger King shares hit lower circuit
Burger King, India’s fastest growing fast-food chain came out with its Initial Public Offer (IPO) at an offer price band of ₹59-₹60 per share. The lot size was 250 shares, valuing one lot at ₹15,000 at the upper end of the price band.
The IPO offer was oversubscribed by 156 times, making it the second most oversubscribed IPO of 2020 after the IPO of Mazagon Dock Shipbuilders Limited which was oversubscribed by 157 times. The listing price of Burger King was ₹112.5 per share which was an impressive 87% listing gain. The shares ended the listing day at ₹135 which is a mammoth 125% gain over the offer price. Not bad for 10 days huh!
Burger King Market Cap
With the shares hitting the upper circuit in the previous two sessions, the market cap had risen to ₹8,363 crores. The market cap has now fallen to ₹6,844 crores after the shares plummeted to hit the lower circuit in the second half of trade today.
With the lockdown restrictions being lifted, investors are confident that the restaurant business is set to boom.
Currently, the IPO of Mrs. Bectors Food is also seeing very strong demand with the IPO being oversubscribed by 114 times. The issue is at a price band of ₹286-₹288 making one lot come in at a value of ₹14,400 at the upper price range.
Mrs. Bectors Food supplies burger buns to fast food giants KFC, Burger King, and McDonald’s among others. The company also sells biscuits under the ‘Cremica’ brand and ‘English Oven’ is the brand under which cookies and bread are being marketed.
With this year having seen many successful IPO listings, will Mrs. Bectors Food too have a bumper listing and grow investor wealth multifold? Only time will tell. In the meantime, all we can do is wait and watch.