Brokers have mixed opinion on the IPO of Speciality Restaurants. While brokerage firm Anand Rathi believes that investors should subscribe to the issue, broking firm Nirmal Bang has suggested that investors can avoid the IPO.
Specialty Restaurants, a fine dine operator, has several reputed brands including Mainland China, Oh! Calcutta, Sigree. It plans to use the issue proceeds of the IPO for the development of new restaurants, food plaza and repayment of portions of term loan facilities.
Speciality Restaurants aims to garner around Rs 182 crores from the sale of the IPO. The company aims to establish 16 new restaurants in 2012-13, of which a bulk of them would be under the “Mainland China” brand.
The IPO is offered at very rich valuations and given the present market conditions, it would not be a surprise to see the shares list below their offer price.