Bengaluru: The Indian arm of US-based Burger King filed for a local initial public offering (IPO) to raise up to Rs 400 crore ($56.6 million) on Monday, as it looks to open more restaurants in a country where international fast-food brands are gaining in popularity.
The Whopper Burger maker, which launched its first restaurant in India in 2014, competes directly with market leader McDonald’s Corp and other restaurant chains such as Domino’s Pizza.
Burger King India Ltd plans to have 325 stores by December 31, 2020, up from 202 as of June. McDonald’s had 470 at last count, according to data by consulting firm Technopak Advisors.
In the year ended March 2019, Burger King India’s revenue from operations had risen 67 per cent to Rs 633 crore ($89.4 million).
Its loss narrowed to Rs 38.28 crore in the same period from Rs 82.23 crore a year earlier.
“Burger King is going with a national franchise instead of regional ones, and that gives them more control and potentially better growth,” Technopak Chairman Arvind Singhal said.
The company plans to use Rs 290 crore of the money raised to open new restaurants, according to the company’s IPO papers.
The issue includes an offer for sale of up to 60 million equity shares by QSR Asia PTE, which owns 99 per cent of the Indian entity. The company did not disclose pricing details.
