Barbeque Nation IPO to open tomorrow. Subscription dates, price band

The company has already raised ₹150 crore through a pre-IPO placement from Xponentia Capital and Jubilant Foodworks.

Barbeque Nation's share sale through an initial public offering (IPO) will open for subscription on Wednesday and the three-day public issue will conclude on Friday, March 26. Barbeque Nation Hospitality is backed by private equity investor CX Partners and stock market investor Rakesh Jhunjhunwala's investment firm Alchemy Capital. The company has already raised ₹150 crore through a pre-IPO placement from Xponentia Capital and Jubilant Foodworks. The company filed preliminary papers in February 2020 and received the Securities and Exchange Board of India’s (Sebi’s) approval in July in the same year to float its IPO.

The company filed preliminary papers in February 2020 and received the Securities and Exchange Board of India’s (Sebi’s) approval in July in the same year to float its IPO. (Photo via Twitter)

Before that, it filed IPO papers with Sebi seeking to raise ₹700 crore in 2017. However, the regulator kept the processing of the company's proposed IPO in abeyance "pending regulatory action for past violations" and finally approved the IPO plan in January 2018. The company could not launch the initial share-sale due to adverse market conditions.

Here what you need to know about Barbeque Nation’s IPO:

1.Barbeque Nation Hospitality has fixed a price band of ₹498-500 per share for its initial share sale. At the upper end of the price band, the IPO is expected to fetch ₹453 crore.

2. Barbeque Nation’s IPO comprises a fresh issue of shares worth ₹180 crore and an offer-for-sale of up to 54,57,470 equity shares.

3. Equity shares aggregating up to ₹2 crore has been reserved for eligible employees.

4. The company plans to use the proceeds from the issue sale to fund its capital expenditure for the expansion and opening of new restaurants. It also plans to prepay or repay certain borrowings and expenses related to general corporate purposes.

5. The issue is being managed by IIFL Securities, Axis Capital, Ambit Capital and SBI Capital Markets.

6. The company is promoted by Sayaji Hotels, Sayaji Housekeeping Services, Kayum Dhanani, Raoof Dhanani and Suchitra Dhanani and is backed by CX Partners, which made its first investment in 2013 and again in 2015.

7. The promoters hold 60.24 per cent, CX Partners owns 33.79 per cent and Jhunjhunwala's Alchemy Capital holds 2.05 per cent of the company. The total operating revenue of the company in FY20 was ₹850.8 crore and the CAGR from FY17 to FY20 was at 19.5 per cent.

8. Barbeque Nation Hospitality owns and operates Barbeque Nation Restaurants. It also operates Toscano restaurants and UBQ by Barbeque Nation Restaurant. Barbeque Nation Hospitality operates 147 outlets across India and six outlets across three countries - the UAE, Oman and Malaysia - as of December 2020.

(With agency inputs)