Burger King India share price continued to surge today, getting locked in at 10 per cent upper circuit at Rs 219.15 apiece on BSE. Burger King India stock has been on a gaining spree since listing earlier this week. Burger King India shares made share market debut at Rs 115.35 apiece, at nearly double the IPO price of Rs 60 per share. With today’s rally, the stock has zoomed 265.25 per cent from the IPO price, nearly quadrupling investors’ money; and it has rallied 92% from listing price, nearly doubling since then.
Dream run for investors
Burger King IPO has witnessed a dream run since its listing on the exchange, and it has made its investors richer, laughing all the way to the bank, according to an analyst. “For long-term investors, this a stock that they can look at holding, however those who are short-term traders, they should look at booking profits as well,” said Aamar Deo Singh, Head, Advisory at Angel Broking.
Burger King India’s market capitalisation has now soared to Rs 8,363.96 crore from Rs 4,402 crore on listing day. “Going forward, the company is looking at increasing its market share by spreading its presence pan India through new stores, which is a plus,” Singh added.
Don’t count on this rally to continue
Some analysts also believe that this rally may soon fizzle out. Yesterday, Vishal Wagh, Head of Research, Bonanza Portfolio Ltd, advised investors to keep booking profit. Out of the 12 IPOs that the stock markets witnessed so far this year, Burger King India is among the top four IPOs of this year. From the day of listing, Route Mobile has gained 221.6 per cent, Happiest Minds Technologies 94.7 per cent while Rossari Biotech surged 94 per cent. Moreover, Burger King received the fourth-best listing on stock markets so far in 2020. The top three listings were by Chemcon Speciality Chemicals which gained 114 per cent on a listing day, Happiest Minds Technologies with 111 per cent listing gains and Route Mobile with a 104 per cent listing premium.
The Rs 810-crore initial public offer (IPO) of Burger King India was subscribed 156.65 times by the investors across categories. The issue received bids for 1,166 crore equity shares against the offer size of 7.44 crore shares.