Casual dining chain Barbeque Nation Hospitality is all set to open its Rs 453 crore IPO for public subscription on March 24 at a price band of Rs 498-500 per share of face value of Rs 5 each. The three-day public issue will conclude on March 26.
The initial public offer comprises a fresh issue of shares worth Rs 180 crore and an offer-for-sale of up to 54,57,470 equity shares. Equity shares aggregating up to Rs 2 crore has been reserved for eligible employees.
At the upper end of the price band, the IPO is expected to fetch Rs 453 crore.
Barbeque Nation Hospitality is backed by private equity investor CX Partners and renowned stock market investor Rakesh Jhunjhunwala’s investment firm Alchemy Capital.
The company has already raised Rs 150 crore via a pre-IPO placement from Xponentia Capital and Jubilant Foodworks.
Proceeds from the issue will be utilised to fund the company’s capital expenditure for expansion and opening of new restaurants.
The funds will also be used in prepayment or repayment of certain borrowings and expenses related to general corporate purposes.
The company is promoted by Sayaji Hotels, Sayaji Housekeeping Services, Kayum Dhanani, Raoof Dhanani and Suchitra Dhanani and is backed by CX Partners, which made its first investment in 2013 and again in 2015.
The promoters hold 60.24 per cent, CX Partners owns 33.79 per cent and Jhunjhunwala’s investment firm Alchemy Capital holds 2.05 per cent of the company.
The total operating revenue of the company in FY20 was Rs 850.8 crore and the CAGR from FY17 to FY20 was at 19.5 per cent.
Barbeque Nation Hospitality had filed preliminary papers to the regulator in February last year, received Sebi’s approval in July 2020 to float the IPO.
The issue is being managed by IIFL Securities, Axis Capital, Ambit Capital and SBI Capital Markets.
Barbeque Nation Hospitality, owns and operates Barbeque Nation Restaurants. It also operates Toscano restaurants and UBQ by Barbeque Nation Restaurant.
As of December 2020, Barbeque Nation Hospitality operates 147 outlets across India and six outlets across UAE, Oman and Malaysia.