The Rs 453-crore Barbeque-Nation Hospitality's IPO will open for subscription on Wednesday, at a price band of Rs 498-500 per share of face value of Rs 5, each
The Rs 453-crore Barbeque-Nation Hospitality’s IPO will open for subscription on Wednesday, at a price band of Rs 498-500 per share of face value of Rs 5, each. The issue will close on Friday, March 26, 2021. The hospitality chain IPO comprises a fresh issue of shares worth Rs 180 crore and offer-for-sale (OFS) of up to 54.57 lakh shares by the existing shareholders and promoters. Investors can make bids for a minimum of 30 equity shares and in multiples thereafter, translating to a minimum investment amount of Rs 15,000 per lot at the higher price band. So far, no grey market activity was seen in Barbeque Nation Hospitality Ltd.
The OFS comprises shares sale in Barbeque Nation Hospitality by following shareholders:
*Sayaji Housekeeping Services Ltd: 10.18 lakh shares
*Azhar Dhanani: 3.39 lakh shares
*Sadiya Dhanani: 3.39 lakh shares
*Sanya Dhanani: 3.39 lakh shares
*Tamara Private Ltd: 33.23 lakh shares
*Aajv Investment Trust: 71,186 shares
*Menu Private Ltd: 26,600 shares
Who can bid how much in Barbeque-Nation IPO
The company has reserved up to 75 per cent of the net offer for qualified institutional buyers (QIBs), 10 per cent for retail investors and the remaining 15 per cent for non-institutional investors. The company has also reserved shares worth Rs 2 crore for its employees. Barbeque-Nation Hospitality Ltd and Tamara Private Ltd (TPL) have already raised Rs 149.97 crore by selling 59.51 lakh equity shares through pre-IPO placement. The fresh issue size stands reduced at Rs 180 crore, according to red herring prospectus. The equity shares are proposed to be listed on both BSE and NSE. The book running lead managers to the issue are IIFL Securities Ltd, Axis capital Ltd, Ambit Capital Private Ltd and SBI Capital Markets Ltd. While Link Intime Private ltd will be the registrar to Barbeque-Nation Hospitality Ltd issue.
Barbeque-Nation Hospitality’s listed peers
The listed peers of Barbeque-Nation Hospitality Ltd are Jubilant FoodWorks Ltd, Westlife Development Ltd, Speciality Restaurants Ltd and Burger King India Ltd. The company will not receive any proceeds from the OFS. While the net proceeds from the fresh issue will be utilised towards capital expenditure for expansion and opening of new restaurants by the company, prepayment or repayment of all or a portion of certain outstanding borrowings availed by the company on a consolidated basis, and for general corporate purposes.
The first Barbeque-Nation restaurant was established in 2008. As of December 31, 2020, the company had 147 Barbeque Nation Restaurants (including opened, temporarily closed and under construction outlets), six International Barbeque Nation Restaurants and 11 Italian Restaurants of which nine are operated under the brand name ‘Toscano’ and one each under the brand names ‘La Terrace’ and ‘Collage’, respectively.