Burger King Gains After Credit Rating Upgrade From ICRA Shares of quick service restaurant chain operator Burger King rose as much as 4 per cent to hit an intraday high of Rs 132.60.
Updated: April 06, 2021 12:13 pm IST
Shares of quick service restaurant chain operator Burger King rose as much as 4 per cent to hit an intraday high of Rs 132.60 after the credit rating agency ICRA upgraded its credit rating to stable from negative. ICRA upgraded its outlook on long-term loan worth Rs 210 crore, long-term bank overdraft worth Rs 20 crore and short-term bank guarantee of Rs 10 crore to A2 from BBB+ and revised outlook from Negative to Stable.
MUMBAI: The listing of Burger King in mid-December was seen as one of the highlights of ongoing Bull Run in the Indian stock market. The company’s shares, which were priced at Rs 60 apiece during the IPO, more than doubled investors’ money in market debut.
In the subsequent days, the stock nearly quadrupled from its IPO price to hit a high of Rs 214. Those rapid gains changed the narrative around Burger King’s IPO, as the stock went from being the poster child of the bull market to a symbol of the euphoria among investors.
Domestic mutual funds, who had invested in the company’s anchor issue, perhaps thought the same way, as they dumped a large number of shares of the company once their lock-in period ended in January. Seven out of the eight mutual funds, which had participated in Burger King’s anchor issue, sold a large portion of their allotted shares in January.