Burger King’s initial public offering of 810 million euros received a solid response from investors in all categories and was subscribed 156.65 times.
Shares of Burger King India rallied 20% to close today at 166.05 rupees on BVB, after a strong start on Monday. The shares increased by almost 131% of the issue price of Rs 60 per piece in the previous session. With today’s stock price rally, Burger King India’s share price has now risen 176.75% from the IPO price, while its market capitalization stands at Rs 6,337.37 crore. “At current prices, valuations seem to be very broad. Technically, the 160 remains a strong resistance. Investors are advised to record at least a portion of their profits, as a sudden correction to 130-115 cannot be ruled out, ”Abhijeet Ramachandran, an independent analyst / co-founder and coach at Tips2Trade, told Financial Express Online.
The listing meets expectations
Burger King India shares were listed at a premium of 92% of the issue price. Most analysts and brokerage firms had recommended “subscribing” to the Burger King India IPO for the earnings on the list. According to analysts at Angel Broking, Burger King India’s listing was in line with expectations, as the issue was at a significant price compared to listed colleagues such as Jubilant FoodWorks (Domino’s Pizza) and Westlife Development (McDonald’s).
Short-term profit vs. long-term investment
Keshav Lahoti, associate capital analyst at Angel Broking Ltd, said short-term investors can make a profit. “We recommend long-term investors to stay invested in the company, as there is a wide range of shares available for the company to grow its business in India,” Lahoti said. Lahoti also said that in the future he expects the company to gain market share by opening more stores compared to competitors. “As the number of stores grows, the operational leverage will begin and the company will be able to report the profit and lead to the revaluation of the multiple for shares,” he added.
The listing of Burger King India shares is the fourth best listing in 2020. The initial public offering (IPO) received a strong response from investors in all categories and was subscribed 156.65 times. So far, Chemcon Specialty Chemicals has grown the most on its stock market debut day, earning 114 percent of the issue price, followed by Happiest Minds Technologies with 111 percent earnings on the list and Route Mobile with a premium of 104 percent. hundred on the day of listing.
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