Burger King India became public company after blockbuster IPO (subscribed 157 times). Currently company operate 267 restaurants in 57 cities. IPO price was 60Rs per share (less than $1) and in a few days price more than tripled.
In India, 55% of Burger King stores are located in malls, 25% in high streets, 15% are drive-thru while 5% are in metros & stations. Because of fast growth Burger King yet to turn profitable.
Pandemic and government imposed limitations negatively impacted fast-food business. But because many small players out of market, Burger King shown fast recovery because operated during the strict lockdown.
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Good review. But I was wondering why it’s share price started hitting lower circuits suddenly after hitting upper circuits initially.
That who bought on IPO kept shares for a few days. After that they wanted to sell when price reached 200rs + . Because most of them though that they gonna make enough profit (almost 250% profit on a few days). On market sale orders dominated and price started falling, hit lower circuit.
When more buyers = price grow. When more sellers = price reduce.
Excellent interpretation! So it’s the profit booking by IPO allottees. Thanks a lot for your kind response!!
Profits are high, but probability of getting shares low (over subscribed 157 times)
Yes, true. Thank you for explaining!