Shares of the quick-service restaurant (QSR) major Burger King India (BKIL) made a stellar debut on the BSE and NSE on December 14 listing at nearly double their issue price.
Shares of Burger King rallied up to 20 per cent to Rs 166.05 and hit a new high on the National Stock Exchange (NSE) in the early morning trade on Tuesday after logging a stellar debut at the bourses on Monday.
At 12:00 pm, BKIL locked in the 20 per cent upper circuit band, as compared to a 0.63 per cent decline in the Nifty50 index. On December 14, the stock of the quick-service restaurant closed at Rs 135, clocking a 125 per cent premium over its issue price of Rs 60 on the BSE. With today’s gain, the stock has rallied 167 per cent compared to its issue price.
Burger King is one of the fastest-growing international QSR chains in India. It got a massive response on its IPO which was oversubscribed by 157 times.
“At the current market price, BKIL fully captures its strong brand positioning, robust store expansion plans, and the bright growth prospects of the QSR industry in India. However given its weak financials, the valuation seems a little stretched vs players like Jubilant Food and Westlife Dev,” cautioned analysts at Motilal Oswal Financial Services.