Everstone Unit QSR Asia Sells 25% Stake In Burger King Franchisee Restaurant Brands

The company confirmed that promoter QSR Asia sold the shares totaling to 25.36% of equity.

<div class="paragraphs"><p>A Burger King outlet. (Photo: Ismail Hadine/Unsplash)</p></div>
A Burger King outlet. (Photo: Ismail Hadine/Unsplash)

Shares of Restaurant Brands Asia Ltd., the franchise owner of Burger King India and Popeyes, rose the most in a day in nearly four months after Everstone-owned promoter firm sold 25.4% stake in six large pre-market trades on the NSE.

The company confirmed in an exchange filing that promoter QSR Asia Pte. sold the shares totaling to 25.36% of equity.

Trades worth a total of over Rs 1,484 crore took place, with deals as large as 8.4 crore shares, according to Bloomberg. Total shares sold in six large trades amounted to 12.54 crore.

The remaining equity held by the promoter stands at 15.44% of the company's equity share capital.

QSR Asia Pte. is the investment vehicle of Singapore-headquartered buyout firm, Everstone Capital. Multiple media reports had suggested that Everstone was in talks to sell its stake in the operator of Burger King stores in India.

Shares of Restaurant Brands Asia surged as much as 14.46% intraday, the most since May 18 when it hit the upper price band at 20%. The stock pared some gains and was trading 12.88% higher at Rs 135.8 apiece at 9:53 a.m. as compared with a gain of 0.15% in the NSE Nifty 50.

The average traded volume so far in the day stood at 9.56 times its monthly average, while the relative strength index was at 69.4, indicating the stock may be overbought.

Of the 10 analysts tracking the company, five maintain a 'buy' rating, two maintain a 'hold', and three suggest to 'sell', according to Bloomberg data. The average of 12-month price targets implies a potential downside of 5.8%.