Burger King India shares rose as much as 3 percent on Wednesday after the company's board of directors approved fund-raising plans.
The board has approved raising of funds by way of further issuance of securities through public and/or private offerings including preferential issue, qualified institutions placement, further public offer or any of the permissible modes in one or more tranches, for an aggregate amount not exceeding Rs 1,500 crore, Burger King said in an exchange.
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Besides, the board of directors also approved changing the name of the company from “Burger King India Ltd” to “Restaurant Brands Asia Ltd".
This is pursuant to the confirmation and reservation of name by the Ministry of Corporate Affairs, Office of the Registrar of Companies, Central Processing Centre and consequent alteration of Memorandum of Association and Articles of Association to the extent of change of name, subject to the approval of the shareholders and other statutory/regulatory approvals, as applicable.
Last week, Rajeev Varman, CEO of Burger King India told CNBC-TV18 that the company is back on its construction targets and will complete 50 restaurants this year.
“Our target is to build another 70 restaurants and more in the following year and continue building in that fashion. Therefore, our target remains to get to 700 restaurants and we should hit that by December 2026,” he said.
This came after Credit Suisse initiated coverage on shares of Burger King with an 'outperform' rating and a target price of Rs 215.
The brokerage house believes Burger King will remain one of the fastest-growing QSR chains in India and expects the recent underperformance to reverse once the out-of-home consumption normalizes and clarity emerges on the company’s Indonesia acquisition.
Credit Suisse believes Burger King will report a net profit in FY24 for the first time since its launch in India.
At 10:57 am, shares of Burger King were trading 0.3 percent higher at Rs 156.6 on BSE. The stock has fallen in the past three sessions and opened almost flat today.
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