- Barbeque Nation Hospitality’s casual dining chain has submitted fresh papers to market regulator Sebi to collect an estimated 1,000-1,200 crore through an initial public offer (IPO).
Barbeque Nation Hospitality’s casual dining chain has submitted fresh papers to market regulator Sebi to collect an estimated 1,000-1,200 crore through an initial public offer (IPO).
According to the draft papers filed with the Securities and Exchange Board of India (Sebi), the IPO comprises a fresh issue of Rs 275 crore shares and a bid-for-sale of up to 98,22,947 equity shares.
The company could consider a Rs 150 Crore pre-IPO placement.
Proceeds of the issue will be used to repay in part or in full and for general corporate purposes and unpaid loans of some 205 crores.
Promoted by Sayaji Hotels, Sayaji Housekeeping Services, Kayum Dhanani, Raoof Dhanani, and Suchitra Dhanani, the company is backed by CX Partners, a private equity firm that made its first investment in 2013 and again in 2015.
The promoters own 60.24 percent, CX Partners owns 33.28 percent and the investment firm Alchemy Capital of renowned stock market investor Rakesh Jhunjhunwala holds 2.05 percent in the venture.
The size of the IPO will be roughly between 1,000-1,200 crore, according to market sources.
IIFL Securities, Axis Capital, Ambit Capital, and SBI Capital Markets are managing the IPO.
The company filed IPO papers with Sebi in 2017 aiming to collect as many as 700 crores as possible. The regulator, however, held in abeyance the processing of the company’s planned IPO “pending regulatory action for previous violations” and finally approved the IPO application in January 2018.
However, due to adverse market conditions, the firm was unable to launch the initial share-sale.
Barbeque Nation Hospitality owns and operates Barbeque Nation Restaurants, which currently operate at 138 locations across India and 7 locations across the UAE, Oman, and Malaysia.
Recently, the company has purchased a 61.35 percent stake in Red Apple Kitchen, owned by Toscano, a casual Italian restaurant chain with 10 outlets across Bengaluru and Chennai. In addition, the company launched UBQ in November 2018 through its existing kitchen infrastructure to provide a la carte Indian cuisine in the value segment that is currently being made available via distribution in 71 cities.
The restaurant chain has opened 59 new outlets since its earlier filing in August 2017 and operates 138 outlets across 78 cities across 24 states in India and seven outlets in the UAE, Oman, and Malaysia.
In India, the restaurant saw 14.29 percent growth compounded annually in its dining covers, which grew from 68.60 crores in FY17 to 89.60 crores in FY19, pillaged by customer referrals and recommendations.
The chain CDR market is one of the fastest-growing segments in the Indian restaurant industry, according to Technopak, and is projected to grow between FY19-FY24 at a CAGR of 20 percent.