Barbeque Nation Hospitality is all set to launch its IPO on Wednesday (March 24, 2021) and the price band for the issue has been fixed in the range of Rs. 498-500 per share. The issue will close for public subscription on March 26. This is another Rakesh Jhunjhunwala backed company that will hit the primary market in a week's time, last week Nazara Technolgies also backed by ace investor Jhunjhunwala recorded whopping subscription of more than 175 times.
1. Issue details: The issue size of the IPO is Rs. 453 crore and includes a fresh share issuance of Rs. 180 crore and an offer for sale or OFS of up to 54,57,470 equity shares.
Link Intime India Private Ltd is the registrar of the IPO. As per brokerages, the share allocation for Barbeque Nation is likely to be completed by April 1 and the stock will debut on the bourses on April 7.
The lot size for subscription is 30 and 10% of the quota is reserved for retail investors.
The investment bankers for the issue are IIFL Securities, Axis Capital, Ambit Capital and SBI Capital Markets.
Promoters of Barbeque Nation include Sayaji Hotels, Sayaji Housekeeping Services, Kayum Dhanani, Raoof Dhanani and Suchitra Dhanani and is also backed by CX Partners.
2. Company profile: The company owns and operates a chain of Barbeque Nation restaurants across India. Also it has Toscano restaurant and UBQ by Barbeque Nation Restaurant under its banner.
Jhunjhunwala holds stake in the firm through his investment firm Alchemy Capital that has the ownership in 5,75,000 shares or 2% stake in Barbeque Nation Hospitality.
As of the quarter ended December, the company owns and operate 164 restaurants that includes 147 Barbeque Nation fine dining restaurants across 77 Indian cities.
3. Issue objective: The proceeds from the issue will be put towards expanding and opening of new restaurants, pre-payment or repayment of all or a part of company's outstanding borrowings and general corporate purposes.
4. Financials: In FY20, the total operating revenue at the firm stood at Rs. 850.8 crore and the CAGR from FY17 to FY20 was at 19.5%.