Barbeque-Nation to launch its IPO on March 24 at a price band of Rs 498-500/share
India’s leading casual dining restaurant Barbeque- Nation Hospitality Limited will launch its public offering of shares on Wednesday, March 24 and will close the bidding process on Friday, March 26. Launched in 2006, the company pioneered the format of ‘over the table barbeque’ concept in the industry.
The hospitality firm aims to raise Rs 452 crore via public issue of shares which accounts to a total of 9,071,927 shares with a face value of Rs 5 per equity share. The issue consists of fresh issue of shares aggregating up to Rs 180 crore and an offer for sale from existing shareholders of 54,57,470 equity shares. Investors can bid for a minimum of 30 shares and in multiples thereafter.
Listing of the company is expected on April 7, 2021 in both BSE and NSE and allotment finalization is expected on April 1.
To maintain liquidity in the company, the company carried out a Pre-IPO placement of 5,951,132 equity shares at a price of Rs 252/ share aggregating to Rs 149.97 crore. Jubilant Foodworks Ltd. and Xponentia Opportunities Fund were the two companies involved in the process.
The net proceeds from the issue will be used towards expansion and opening of new restaurants by the Company, repayment of certain outstanding borrowings and for general corporate purposes, the company said in its offer document.
When asked on why the company is looking for physical expansion amid the pandemic outbreak, The Company said that dining business is their key business, and they will continue to expand it further amid the industry’s focus on switching to cloud businesses. However, the company said they will look forward to the trending concept of cloud business with a strong business model in the future.
Till December 2020, the firm marked 147 Barbeque Nation restaurants (including opened, temporarily closed and under construction outlets) across 77 cities in India and six international Barbeque Nation restaurants. The company started operating with seven members which grew to 400 members in the backend, who were working with 8000 members in the frontend, said Kayum Dhanani – Managing Director of the company in the press meet.
During the pandemic, the delivery business of the company ramped up owing to restrictions in the country. The company introduced “Barbeque-in-a-Box” concept for delivering around the country and which resulted in 18.8 per cent of their total sales in the consolidated revenue. The revenues from delivery grew from Rs 261 million in FY20 to Rs 379 million in FY21 (eight-month). The overall revenues of the company also increased 20 per cent in the last three years, said Rahul Agrawal – CEO of the company.
The overall business currently has reached to 84 per cent of its pre-covid levels in November 2020. However, the company denied responding on a query stating when the company is expecting the business to reach 100 per cent of its pre-covid levels. Further, the company aims to expand its business in and over the country and serve its customers by tracking the GSI (Guest Satisfaction Index), which is the company’s unique move to track customer satisfaction.
