Burger King India’s initial public offering will open on December 2 with the price band set at Rs 59-60. Rajeev Varman, CEO of Burger King India said that they will use the money raised towards repayment of term loans and building restaurants.
“The Rs 450 crore that is the primary is basically going to do two things. One is, we are going to use that money to pay off term loan of Rs 165 crore that was used to build restaurants last year. The balance will be used for building restaurants in the future along with the other expenses like the IPO expenses and in general corporate purpose expenses,” he said in an interview to CNBC-TV18.
Varman said that Burger King India is looking at opening smaller restaurants and also building restaurants on highways. “We are aiming to open 700 restaurants by December 2026”, he said.
Varman expects the company to grow at 23 percent for the next 5 years.
“When I came here in 2014 and we reflected on the market, and if you look at the Technopak reports that were published 5 years ago, the growth of this portion the business, which is the chained restaurants was about 19-20 percent. That growth for the next 5 years till 2025 is reflected at another 23-24 percent. So there is ample amount of growth area,” he said.