By Aditya Raghunath
Investing.com — Burger King India Ltd (NS:), the fast-food company that made a stellar debut on the Indian markets in December 2020 is going through a period of sobriety now. The shares, with an issue price of Rs 60, closed day one at Rs 135 before going on to touch a high of Rs 214. That’s an upside of 257% from its issue price.
However, the stock tumbled down to Rs 136 before the Budget rally took it to Rs 154. Today, the stock is trading at Rs 144. Burger King India reported its third-quarter results ended December 2020 for FY21.
The company reported a net loss of Rs 29.02 crore for the December 2020 quarter compared to a net loss of Rs 21.72 crore in December 2019. Revenue fell 28.4% compared to December 2019. The markets haven’t been too impressed with the stock and it has fallen.
Burger King India’s mutual fund anchor investors have also given the company a vote of no-confidence as they dumped the company’s stock once their lock-in period got over. A report in The Economic Times said that seven out of eight mutual funds that had participated as anchors in Burger King India’s IPO sold their shares. These funds include ICICI Prudential (LON:) Mutual Fund, SBI (NS:) Mutual Fund, HDFC (NS:) Mutual Fund, Nippon India Mutual Fund, and Aditya Birla Sunlife Mutual Fund who have sold up to 79% of the shares that were allotted to them.