Burger King lists on BSE at 92.25% premium, Sensex touches new high

Burger King's bumper listing was better than expected and came on the back of expectations of strong revenue growth and store additions.
Burger King
Burger King
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Burger King India’s shares listed at a 92.25% premium on Monday, with the stock listing at Rs 115.35 on the Bombay Stock Exchange, as against the issue price of Rs 60. On the National Stock Exchange, the scrip listed at an 87.50% premium at Rs 112.50. This too was against the issue price of Rs 60. 

The bumper listing was better than expected and came on the back of expectations of strong revenue growth and store additions. Analysts were optimistic about Burger King and had expected it to list around a 70% premium. 

Between December 2 and 4, during its Initial Public Offering (IPO), Burger King raised Rs 810 crore, with it being subscribed 156 times. The company is going to be using the funds to pay off debts and to fund expansion, and with the IPO, it was the fourth company this year which saw bidding of more than 100 times.

The Sensex jumped over 250 points in early trade on Monday tracking gains in index majors ICICI Bank, HDFC and L&T amid persistent foreign fund inflows and largely positive trend in global markets.

After touching its record intra-day high of 46,373.34 in the opening session, the 30-share BSE index was trading 235.41 points or 0.51% higher at 46,334.42.

Similarly, the broader NSE Nifty rose 69.70 points or 0.52% to 13,583.55. It hit a high of 13,588.40 in early trade.

ONGC was the top gainer in the Sensex pack, rallying around 3%, followed by Tata Steel, L&T, Sun Pharma, M&M, ICICI Bank and NTPC. On the other hand, Tech Mahindra, HDFC     Bank and Reliance Industries were among the laggards.

Domestic equities look to be good at the moment. Positive data flows along with persistent FPI flows have been quite supportive for the markets, said Binod Modi Head-Strategy at Reliance Securities.

"Further, better than expected IIP data for October 2020 along with a sharp jump in electricity suggests that industrial activities are back on growth track, which bodes well for equities," he added.

On the global front, US equities ended lower last week as concerns over slow progress on fiscal stimulus despite favourable developments on the vaccination process weighed on investors' sentiments.

"This week is likely to be quite crucial for US equities as Fed policy meeting outcomes along with the stance of Congress about fiscal stimulus are likely to determine the Santa rally for the markets. Additionally, clarity over Brexit is expected to emerge by weekend also," he noted.

Elsewhere in Asia, bourses in Shanghai, Seoul and Tokyo were trading on a positive note in mid-session deals, while Hong Kong was in the red.

Meanwhile, the global oil benchmark Brent crude futures were trading 0.52% higher at USD 50.23 per barrel.

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