Burger King share price zooms another 20% today, skyrockets 232% from IPO; time to book profit?

Burger King India share price hit 20 per cent upper circuit of Rs 199.25 apiece on BSE today. Earlier this week, Burger King India shares made market debut and listed at 92 per cent premium from issue price. Since then, Burger King stock has zoomed further 73 per cent. With today’s 20 per cent gain in the stock price, Burger King India’s share price has now skyrocketed 232 per cent from the IPO price of Rs 60 apiece. Analysts advise to keep booking the profit in the stock. “Soon this rally will fizzle out. Investors who have this stock should keep booking profit everytime Burger King India shares hit the upper circuit. They may get a lower level to enter,” Vishal Wagh, Head of Research, Bonanza Portfolio Ltd, told Financial Express Online.

Burger King India’s market capitalisation has also zoomed to Rs 7,604.47 crore today, from Rs 4,402 crore on the listing day. Burger King will raise Rs 450 crore from the issue while Rs 360 crore will come from the Offer For Sale (OFS) for the promoters of the firm. Following the Chemcon Speciality Chemicals which gained 114 per cent on the listing day, Happiest Minds Technologies with 111 per cent listing gains and Route Mobile with a 104 per cent premium, Burger King India shares listing has become the fourth-best listing so far in 2020.

The Rs 810-crore initial public offer (IPO) of Burger King India had received a strong response from investors across categories and was subscribed 156.65 times. The issue received bids for 1,166 crore equity shares against the offer size of 7.44 crore shares and was sold in the price band of Rs 59-60 apiece. During the three-day bidding process, analysts had recommended to subscribe to the issue for the listing gains as the Burger King India IPO was priced lower as compared to its peers such Jubilant FoodWorks and Westlife Development.