Barbeque Nation IPO date, price: The IPO of Casual dining chain Barbeque Nation Hospitality will open for public subscription on Wednesday. The initial public offer comprises 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 have been reserved for eligible employees.
The company has fixed a price band of Rs 498- 500 per share for its initial share-sale. The public issue will close on March 26. At the upper end of the price band, the IPO is expected to fetch Rs 453 crore. A retail investor can apply for a minimum of 1 lot which comprises 30 shares (30 shares X Rs 500 per share = Rs 15,000) and a maximum of 13 lots.
Ahead of the public issue, the company raised Rs 203 crore from anchor investors ahead of its initial share-sale. The company's IPO committee has decided to allocate 40,57,861 shares at Rs 500 apiece to 21 anchor investors. At this price, the company raised Rs 202.89 crore. The company has already raised Rs 150 crore through a pre-IPO placement from Xponentia Capital and Jubilant Foodworks.
The anchor investors 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.
Barbeque Nation Hospitality is backed by private equity investor CX Partners and renowned stock market investor Rakesh Jhunjhunwala's investment firm Alchemy Capital.
Barbeque Nation GMP
No activity was recorded in the grey market for Barbeque Nation shares. The basis of allotment will be finalised on April 1 and refunds will be initiated on April 5. The shares will be credited in the demat accounts of investors on April 6. The shares of Barbeque Nation will be listed on the NSE and BSE on April 7.
Proceeds of the fresh issue will be utilised to fund the company's capital expenditure for expansion, besides 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. It is backed by private equity firm CX Partners, which made its first investment in 2013 and again in 2015.
The promoters hold 60.24 per cent stake, CX Partners owns 33.79 per cent and Jhunjhunwala's investment firm Alchemy Capital holds 2.05 per cent in 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, which filed preliminary papers 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 operated 147 outlets across India and six outlets across three countries -- UAE, Oman and Malaysia.
Earlier in 2017, the company had filed IPO papers with Sebi seeking to raise Rs 700 crore. However, the regulator kept the processing of the company's proposed IPO in abeyance "pending regulatory action for past violations". It finally approved the IPO plan in January 2018. However, the company could not launch the initial share-sale due to averse market conditions.
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