Casual restaurant chain Barbeque Nation hits the IPO road with a Rs 453 core offer. The bidding window opens on March 24 for two days. Before it floats into the market, let’s look at the important points related to it.
Barbeque Nation IPO
- In a maiden offer, Barbeque Nation plans to rake Rs 453 crore from the market. Theshares will launch in the price band of Rs 498-500 per share, carrying a face value of Rs 5
- Thesubscription window for the retail investors opens on March 24, 2021, for two days, till March 26, 2021
- Finalisationof IPO share allotment will happen on April 1, 2021
- BarbequeNation IPO date for crediting sharing to investors’ account is April 6, 2021
- Theissue size contains Rs 180 crores of fresh shares and around 57 lakh of offer for sale equity shares from existing shareholders
- Investors must apply for a minimum of 30 shares and in multiples of it thereafter,translating to a minimum investment amount of Rs 15,000 at the upper price limit
- Theissuer has reserved up to 75 percent of the issue size for qualified institutional Only 10 percent for retail investors and non-institutional investors get 15 percent reservation in the issue size
- Eligibleemployees receive a reservation of up to Rs 2 crores worth of shares
- Theissuer has already raised 97 crores by selling 59.51 lakh equities through a pre-IPO placement of shares
- IIFL Securities Ltd, Axis Capital Ltd, Ambit Capital Private Ltd and SBI Capital Markets, are the book running lead managers of the offer and Link Intime Private Ltd. is the registrar
Barbeque Nation Hospitality Details
Barbeque Nation started in 2006 and introduced the first restaurant in 2008. The brand is one of India’s fastest-growing casual dining chains, with 147 restaurants in 73 Indian cities and seven restaurants abroad as of December 31, 2020. Apart from the flagship Barbeque Nation, the restaurant brand also owns eleven Italian restaurants, nine under the name of Toscano, and one each under La Terrace and Collage.
The company received SEBI approval in 2020, but the plan got delayed because of the pandemic outbreak. Barbeque Nation suggested that it will utilise the capital to fund its expansion plan and repayment of borrowing. It has already raised Rs 149.97 crore by selling 59,51,132 equity shares in a pre-IPO placement of shares, which reduced the original fresh issue size of Rs 275 crores to Rs 180 cores.
Barbeque Nation has listed peers as Jubilant FoodWorks Ltd, Westlife Development Ltd, Speciality Restaurants Ltd, and Burger King India Ltd. Burger King launched its IPO in 2020 and was one of the highest subscribed offers. Barbeque Nation is hoping a good response from investors as liquidity is high in the market.