Backed by Rakesh Jhujhunwala’s Alchemy Capital, Barbeque Nation files IPO again; here are the details

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Updated: February 18, 2020 5:30:23 PM

Barbeque Nation Hospitality on Tuesday filed fresh papers with market regulator SEBI for its IPO.

NCDEX, IPO, Build India Capital Advisors LLP, Canara Bank, BSE, Punjab National Bank, Canara Bank, SBI Capital MarketsThe company plans to raise Rs 1,000-1,200 crore through the IPO, media reports said.

Barbeque Nation Hospitality on Tuesday filed fresh papers with market regulator SEBI for its IPO. The casual dining chain plans to raise Rs 1,000-1,200 crore through the IPO, media reports said. The public offering by the company includes a fresh issue of shares worth Rs 275 crore and an offer for sale of up to 98,22,947 equity shares. A pre-IPO placement worth Rs 150 crore may also be considered. The money raised would be used to repay an outstanding borrowing of Rs  205 crore in part or full and for general corporate purposes. The IPO will allot up to 50 per cent to qualified institutional buyers (QIBs) and 15 per cent to non-institutional bidders. The remaining 35 per cent will be allocated to retail individual bidders.

Sayaji Hotels, Sayaji Housekeeping Services, Kayum Dhanani, Raoof Dhanani, and Suchitra Dhanani and is backed by private equity firm CX Partners are the promoter companies.  IIFL Securities, Axis Capital, Ambit Capital, and SBI Capital Markets would manage the public offering. The company first filed for IPO with the capital markets regulator SEBI in 2017. The plan finally received the IPO plan in January 2018, however, it didn’t launch the initial share-sale on account of adverse market conditions. Barbeque Nation Hospitality owns and operates Barbeque Nation Restaurants. It currently operates 138 outlets across India and 7 outlets in the UAE, Oman, and Malaysia.

“Barbeque Nation IPO may generate reasonably good interest if the market conditions are also favourable as its one of the leading firms in casual dining with 138 outlets across India and 7 outlets in the UAE, Oman and Malaysia. It is one of India’s fastest-growing and widely recognised restaurant brands promoted by Sayaji Hotels and private equity firm CX Partners. Food Services is a key segment in the Indian economy and increasing urbanization, as well as working age population, bodes well for the increase in ‘eating out culture’ that will benefit the company”, Ajit Mishra, VP Research, Religare Broking, told Financial Express Online.

“On the financial performance front, while same-store sales growth has been in mid-single-digit in the last two years, its revenue from operations has grown at a CAGR of 22% during FY17-19. However, on the flip side, the company reported losses at the net level from continuing operations (consolidated) in FY19 and H1FY20 (source: DRHP). Further, its valuation vs peers will also be a key factor in the success of this IPO”, Ajit Mishra added.

The promoters of Barbeque Nation hold 60.24 per cent , CX Partners own 33.79 per cent and renowned investor Rakesh Jhunjhunwala’s firm Alchemy Capital owns 2.05 per cent in the company.

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