Equity Analyst, LightStream Research

Oshadhi Kumarasiri

An equity research analyst with over 7 years of experience in multiple sectors. Previously worked for one of the world's largest asset managers with about USD2.5trn in AUM, covering small and micro-cap companies in the consumer sphere across Europe and developed Asia. Also experienced in covering multiple industries including banking, insurance and asset management, retail, tech, telco and REIT.

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LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

Equity Capital Markets

Restaurant Brands Asia / Equity Capital Markets

<a href="https://www.smartkarma.com/entities/beta-kappa-investments-ltd" target="_blank" data-smartkarma-citation="entities:28445:1" rel="noopener">Burger King India (BKI IN)</a> has filed for an IPO with the Securities and Exchange Board of India (SEBI). The initial filing in November 2019 was expected to raise INR 4bn through a fresh issue of up to 60m equity shares, along with a private placement of up to INR1.5bn.
However, on 22nd October 2020, the company filed an addendum to DRHP under which the size of the fresh issue has been increased to INR 6bn. The company has already undertaken a pre-IPO placement through a rights issue of 13.2mn equity shares to the Promoter at INR 44.00 per share, which aggregates to INR 580.8m, reducing the fresh issue size to INR 5,419.2m. Burger King India has mentioned that it may consider undertaking another pre-IPO placement of the remaining amount of up to INR 919.2m.
QSR Asia is the promoter entity and has F&amp;B Singapore, BK AsiaPac, RV Services Pte Ltd and Ajay Kaul (Senior director at F&amp;B Asia Ventures) as its shareholders. Investment banks Kotak Mahindra Capital, CLSA India, Edelweiss Financial Services and JM Financial have been appointed to advise the company on the IPO.
The company plans to use the proceeds from the IPO as follows.
<table class="table table-striped">
<tbody>
<tr>
<td style="width: 374.0pt;">
Particulars
</td>
<td style="width: 79.0pt;">
Amount (INRm)
</td>
</tr>
<tr>
<td style="width: 374.0pt;">
Funding roll out of new Company-owned Burger King Restaurants
</td>
<td style="width: 79.0pt;">
4,322.42
</td>
</tr>
<tr>
<td style="width: 374.0pt;">
Repayment or prepayment of outstanding borrowings of the Company obtained for setting up of new Company-owned Burger King Restaurants
</td>
<td style="width: 79.0pt;">
1,622.42
</td>
</tr>
<tr>
<td style="width: 374.0pt;">
Capital expenditure incurred for setting up new Company-owned Burger   King Restaurants
</td>
<td style="width: 79.0pt;">
2,700.00
</td>
</tr>
<tr>
<td style="width: 374.0pt;">
General corporate purposes
</td>
<td style="width: 79.0pt;">
*
</td>
</tr>
</tbody>
</table>
<div class="content-remarks">
Source: Company disclosures, *to be determined on finalisation of the Offer Price and updated in the Prospectus. The amount utilised for general corporate purposes shall not exceed 25% of the Net Proceeds.
</div>

Burger King India (BKI IN) has filed for an IPO with the Securities and Exchange Board of India (SEBI). The initial filing in November 2019 was expected to raise INR 4bn through a fresh issue of up to 60m equity shares, along with a private placement of up to INR1.5bn.
However, on 22nd October 2020, the company filed an addendum to DRHP under which the size of the fresh issue has been increased to INR 6bn. The company has already undertaken a pre-IPO placement through a rights issue of 13.2mn equity shares to the Promoter at INR 44.00 per share, which aggregates to INR 580.8m, reducing the fresh issue size to INR 5,419.2m. Burger King India has mentioned that it may consider undertaking another pre-IPO placement of the remaining amount of up to INR 919.2m.
QSR Asia is the promoter entity and has F&amp;B Singapore, BK AsiaPac, RV Services Pte Ltd and Ajay Kaul (Senior director at F&amp;B Asia Ventures) as its shareholders. Investment banks Kotak Mahindra Capital, CLSA India, Edelweiss Financial Services and JM Financial have been appointed to advise the company on the IPO.
The company plans to use the proceeds from the IPO as follows.




Particulars


Amount (INRm)




Funding roll out of new Company-owned Burger King Restaurants


4,322.42




Repayment or prepayment of outstanding borrowings of the Company obtained for setting up of new Company-owned Burger King Restaurants


1,622.42




Capital expenditure incurred for setting up new Company-owned Burger   King Restaurants


2,700.00




General corporate purposes


*





Source: Company disclosures, *to be determined on finalisation of the Offer Price and updated in the Prospectus. The amount utilised for general corporate purposes shall not exceed 25% of the Net Proceeds.


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