Burger King bumper listing; jumps 131 per cent on listing debut
On Monday, Burger King gained by around 131 per cent, touching its high of Rs 18 per share on BSE on the listing debut day.
These gains are above the 85 per cent premium the market was assigning for the stock over the weekend. In spite of recording such high gains, analysts further believe that there is good potential for the stock to see some more profits in the coming days.
The stock got listed at Rs 115.35, a 92 per cent premium over its issue price on BSE.
The quick-serve restaurant (QSR) chain's Rs 810 crore initial public offer (IPO) had received an overwhelming response from the investors, with the public offer being subscribed to 156.65 times. The issue generated bids for 11.7 billion shares worth around Rs 70,000 crore as against only 75 million on offer. This had made it one of the most-subscribed IPOs ever.
Going ahead, the market is likely to open a new store in the markets. Hence, as the store count will increase, the operating leverage would also improve thus, benefiting the company's profitability and growth. Despite the COVID-19 impact, the company has been seeing a gradual increase in the footfalls on an MoM basis along with a recovery in its deliveries, almost reaching its pre-COVID-19 levels.