Quick service restaurant chain Burger King India has received markets regulator Sebi’s approval for an initial public offer.
The company, which filed its draft IPO papers with the watchdog in November, obtained its final observations on January 24, as per the latest update with the Securities and Exchange Board of India (Sebi).
The regulator’s observations are necessary for any company to launch public issues such as initial public offer, follow-on public offer and rights issue.
Going by the draft papers, Burger King’s offer comprises fresh issue of equity shares aggregating up to Rs 400 crore and an offer for sale of up to 6 crore equity shares by QSR Asia, the promoter.
Net proceeds from the fresh issue are proposed to be utilised for funding roll out of new company-owned Burger King Restaurants and general corporate purposes.
The initial share-sale is being managed by Kotak Mahindra Capital Company, CLSA India Pvt Ltd, Edelweiss Financial Services and JM Financial. The company’s shares are proposed to be listed on the BSE and the NSE.
As of June 30, 2019, the company had 202 restaurants including seven sub-franchised Burger King Restaurants across 16 states and union territories and 47 cities across India, as per the draft papers.