Barbeque Nation Hospitality Ltd. will launch a Rs 452.87-crore maiden offer starting Wednesday, deriving optimism from last year’s IPO rush that extended into 2021.
The restaurant chain that grills chicken tikka to potatoes on the table will sell the shares at Rs 498-500 apiece in its initial public offer. It comprises a fresh issue of Rs 180 crore and an offer-for-sale by Sayaji Housekeeping Services Ltd., Azhar Dhanani, Sadiya Dhanani, Sanya Dhanani, Tamara Pvt., AAJV investment Trust and Menu Pvt. worth Rs 272.85 crore, according to a red herring prospectus.
The pricing of the issue is at a significant premium to a pre-IPO placement at Rs 252 apiece made to investors, including Jubilant Foodworks in January this year.
Issue date: March 24-26.
Face value: Rs 5 apiece.
Fresh Issue: 36 lakh shares
Offer-for-sale: 54.57 lakh shares
Minimum lot size: 30 shares.
Listing on: National stock Exchange, BSE.
Book-running lead managers: IIFL Securities Ltd., Axis Capital Ltd., Ambit Capital Pvt. and SBI Capital Markets Ltd.
Use Of Proceeds
Barbeque Nation will use Rs 54.6 crore as capital expenditure to expand and open new restaurants, and Rs 75 crore towards prepayment or repayment of all or a portion of certain outstanding borrowings of the company on a consolidated basis.
Business Profile
Barbeque Nation has a network of 147 namesake restaurants, including opened, temporarily closed and under construction outlets, across 77 cities in India, and six international outlets in three countries — four in the U.A.E. and one each in Oman and Malaysia — as on Dec. 31, 2020.
It also owns 61.35% of the equity share capital on a fully diluted basis in one of its subsidiaries, Red Apple, which owns and operates nine restaurants under the brand name “Toscano”— a casual dining Italian restaurant chain—and one each under “La Terrace” and “Collage”. It has 11 Toscano restaurants in Karnataka, Tamil Nadu and Maharashtra.
The company’s delivery business has grown from Rs 26.09 crore in fiscal ended March 2020 to Rs 37.89 crore during the eight months ended Nov. 30.
“We have increased the share of delivery to 15% in November,” Rahul Agarwal, chief executive officer at Barbeque Nation Hospitality, said in an interview with BloombergQuint.
Shareholding Pattern
Promoter shareholding in Barbeque Nation will decline from 47.8% pre-issue to 38.1% after the IPO.
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