Casual dining chain Barbeque Nation Hospitality opened for Initial Public Offering (IPO) on Wednesday. Through the IPO, the company wished to issue shares worth ₹180 crore and up to 54,57,470 equity shares are for an offer-for-sale.
The investors can buy the shares at fixed a price band of ₹498- 500 per share in its initial share-sale. March 26 is the last date for the public issue.
The minimum lot size contains 30 shares. It means, if you invest on its minimum lot size, then also your maximum investment on it would be ₹15,000 (30 shares X ₹ 500 per share). A retail investor can buy a maximum of 13 lots.
Details at a glance:
₹498 to ₹500 per equity share
₹ 452 Cr – ₹ 453 Cr
₹5 per equity share
Jubilant FoodWorks Pre-IPO Share Placement
Ahead of the public issue, Domino’s Jubilant FoodWorks were amongst the investors that were allotted the ₹252 apiece preferential shares.
Through this IPO, the company has already raised ₹203 crore by allotting 40,57,861 shares at Rs 500 apiece to 21 anchor investors. As per reports, this Casual Dining Restaurant has already managed to raise ₹ 150 crore through a pre-IPO placement from Xponentia Capital and Jubilant FoodWorks. Since some of the promoters withdrew at the last moment, the initial offering size has reduced from ₹ 1100 crores to the current ₹452 crore.
In terms of percentage, Jubilant FoodWorks becomes the third-largest shareholder with a 10.72% stake in the company, making behind promoters SHKSL and Tamara Private Limited.
The key investors in Barbeque Nation’s include Goldman Sachs India Ltd, Nomura Funds Ireland Public Limited Company, Fidelity Investment Trust, SBI Mutual Fund (MF), ICICI Prudential MF, Kotak MF, Aditya Birla Sunlife MF, HDFC MF, HDFC Life Insurance Company, Kuber India Fund, Pioneer Investment Fund and UPS Global Trust.
Objectives of IPO
The company wants to use the proceedings for setting-up of new Barbeque Nation restaurants in India, repayment or prepayment of loans of the Company and Subsidiaries and other General corporate purposes.
Business of Barbeque Nation
Barbeque Nation Restaurants is owned and operated by Barbeque Nation Hospitality. Under its operation, Toscano restaurants and UBQ by Barbeque Nation Restaurant also come.
In FY20, Barbeque Nation reported a loss of ₹33 crore. The company is reporting losses from the past three consecutive Financial years. Loss in FY 2018 was 5.83 crore and in FY2019 was 38 crore. The company reported the Compound Annual Growth Rate (CAGR) from FY17 to FY20 at 19.5 per cent. As of December 2020, Barbeque Nation Hospitality has 147 outlets across India and six outlets abroad in countries like UAE, Oman and Malaysia.
The IPO is awaited to list on the stock exchange on April 7, 2021, following the finalisation of Barbeque Nation IPO allotment on April 1, 2021.