Assuming the regulatory approval process takes the usual time, Burger King
India would list early next year, joining rivals Jubilant FoodWorks (operator of the Domino’s Pizza chain) and Westlife Development (master franchisee of McDonald’s in the western and southern markets) in going public. Typically, Sebi takes between four and six weeks to vet and clear an IPO
Everstone owns and operates Burger King’s branded restaurants across India and Indonesia, as part of its food and beverage Asia portfolio. Everstone has invested in more than 30 portfolio companies
in the consumer and consumer-led sectors across India and Southeast Asia.
Investment bankers said taking Burger King
India public was part of Everstone’s strategy to liquidate its investment. In May, Everstone-backed non-banking financial company IndoStar Capital Finance had raised Rs 1,844 crore through an IPO.
In 2017, the PE firm's education sector-focused publishing company S. Chand and Co got listed in a Rs 729-crore IPO.
An email sent to Everstone seeking comment remained unanswered.
Edelweiss, Kotak Mahindra Capital, JM Financial, and CLSA are the investment bankers managing the Burger King IPO.
Market players said Burger King India could command attractive valuations, given the investor preference for consumer-oriented brands. Also, the listed QSR players trade at lofty price-to-earnings multiples. Jubilant Foodworks now trades at 51 times its estimated one-year forward earnings.
Industry players said the Burger King IPO could infuse life into the moribund primary market. According to Prime Database, only 13 companies
had filed for IPO documents in this calendar year, 45 per cent lower than in the corresponding period last year. Even the total amount raised through IPOs has shrunk to Rs 10,717 crore in 2019, a third of the Rs 30,959 crore raised in the previous year. However, most companies
that have listed this year have performed well in the secondary market.