Restaurant Brands Asia QIP Closes With Nearly 4% Discount To Floor Price

Restaurant Brands Asia Ltd., the operator of fast food chains such as Tim Hortons, Burger King and Popeyes, completed its share sale to institutional investors on Wednesday. The board issued shares under the qualified institutional placement route at Rs 60 apiece, a discount of 3.72% to the floor price of Rs 62.32, according to an exchange filing.

The operator aimed to raise up to Rs 500 crore and had secured the nod from its board of directors in Dec. 2024 to raise funds. The fundraising plan had received approval from the lender's shareholders at the extraordinary general meeting called on Jan. 25.

The settlement date, or the day that shares will be credited to the shareholders, is expected to be March 27, and shares will commence trading on the bourses on April 01.

Net proceeds from the fundraiser are expected to be for prepayment of debt and capital expenditure.

Motilal Oswal is the sole book-running lead manager of the QIP.

Recently, public sector bank Punjab & Sind Bank had also announced the approval and launch of its QIP, as per an exchange filing. The floor price of the QIP was fixed at Rs 40.38 apiece, and this development comes after the company's board initially proposed the fundraise nearly 10 months ago to raise capital up to Rs 2,000 crore through the issuance of securities.

More public sector banks such as Central Bank of India and UCO Bank have also recently launched fund raises through qualified placement.

Shares of RBA settled 2.2% higher at Rs62.32 apiece on the NSE, compared to a 0.77% decline in the benchmark NSE Nifty 50 on Wednesday.

Year-to-date, the stock has fallen 26.58%, whereas the fall has been steeper at 38.93% in the past 12 months.

Six out of the 12 analysts tracking the company have a "buy" rating on the stock, four suggest a "hold" and two have a "sell", according to Bloomberg data. The average 12-month analyst price target of Rs 90.58 implies a potential upside of 45.3%.