Everstone infuses Rs 45 crore into Burger King India

Burger KingIndia has received a fresh capital infusion of ₹45 crore and a loan facility of ₹150 crore from its parent Everstone Group, the master franchise owner of the American fast-food chain in India. The money would go into opening new stores, refurbishing existing ones and transaction-related expenses, according to the firm’s latest regulatory disclosures.

While the paid-up capital has gone up to ₹366.48 crore with the fresh infusion, Burger King India has also increased its authorised capital to ₹405 crore from ₹350 crore, the company said in its latest filings to the Registrar of Companies (RoC). The company said the existing authorised capital was insufficient to meet the business requirement which is why it raised it.

Analysts said this signals more fund infusion in the days to come. “The deficit in current paid up of ₹366.48 crore and authorised capital of ₹405 crore leads to the inference that there could be another round of capital infusion from Everstone in the near future,” said Mohit Yadav, founder of business intelligence platform Veratech Intelligence.

He said the line of credit of up to ₹150 crore, which Burger King can borrow in 12 months, demonstrates Everstone’s confidence in its Indian business to generate considerable cash flow in coming years for timely service of the debt. Burger King India, which runs more than 214 outlets across the country, has no borrowings as of now.

An email sent to Burger King India CEO Rajeev Varman remained unanswered till Monday press time.

Source : https://retail.economictimes.indiatimes.com/news/food-entertainment/food-services/everstone-infuses-rs-45-crore-into-burger-king-india/71060574