Barbeque Nation Hospitality will open its initial public offering for subscription on March 24 and the offer will close on March 26. The price band for the issue has been fixed at Rs 498-500 a share. The issue comprises a fresh issue of Rs. 180 crore and an offer for sale of 54,57,470 equity shares by shareholders. Sayaji Hotels, Sayaji Housekeeping Services, Kayum Dhanani, Raoof Dhanani, and Suchitra Dhanani are the promoters of the Hospitality Company. Investors can bid for a minimum of 30 equity shares and in multiples of 30 equity shares thereof, which translates to a minimum application size of Rs. 15,000 per lot at the higher price band. The company has reserved 2 crores worth of shares for its employees. The company has reserved 75 percent of the total book size for qualified institutional buyers, 10 percent for retail investors, and the remaining 15 percent for noninstitutional investors.
Price band: Rs. 498-500 per share
Minimum bid: 30 equity shares
Opens on: March 24
Closes on: March 26
Our verdict: Neutral
The company will utilise net proceeds from the fresh issue for expansion and opening of new restaurants and repaying certain borrowings, while the offer for sale money will go to the selling shareholders. Equity shares are proposed to be listed on the BSE and NSE. Barbeque Nation Hospitality is the owner of the casual dining restaurant chain Barbeque Nation Restaurants, one of India’s leading casual dining restaurant chains in terms of outlet count as of September 2020. The company launched the first Barbeque Nation restaurant in 2008 and increased the count to 147. It also had six outlets in three countries as of December 2020. Barbeque Nation Restaurants was incorporated in 2006. It offers the best quality of food offerings, ambiance, and services to customers. It also owns and operates Toscano Restaurants and UBQ by Barbeque Nation that caters to the delivery segment. As of November 30, 2019, it has 138 Barbeque Nation Restaurants in 73 cities in India and 7 International Barbeque Nation Restaurants in 3 countries outside India.
The company has recently diversified into another brand “Red Apple” which operates 10 Italian restaurants in Chennai and Bengaluru.