Barbeque Nation IPO to open on 24 Mar; issue price fixed at ₹498-500 a share

Mumbai: Barbeque Nation Hospitality Ltd’s initial public offering will open on 24 March, with the issue price fixed at ₹498-500 per share. The offer will close on 26 March.

The IPO comprises a fresh issue of shares worth ₹180 crore and an offer for sale of up to 5.46 million equity shares by current promoters and shareholders.

The offer for sale comprises sale by Sayaji Housekeeping Services Ltd of up to 1.02 million shares, by Azhar Dhanani, Sadiya Dhanani and Sanya Dhanani of up to 3.39 lakh each, and by Tamara Pvt Ltd of 3.32 million shares.

The Dhanani family holds 45.7% in Barbeque Nation through a subsidiary of their listed flagship Sayaji Hotels. CX Partners owns 21.72% in the firm and ace investor Rakesh Jhunjhunwala's investment firm Alchemy Capital holds 2.07%.

At the upper end of the price band, the firm will raise around ₹453 crore.

The company said it has completed a pre-IPO placement by issuing 5.95 million shares aggregating to ₹149.97 crore.

IIFL Securities, Axis Capital, Ambit Capital and SBI Capital are the lead managers to the issue.

Net proceeds aggregating to ₹54.62 crore will be used for setting up 26 new Barbeque Nation Restaurants during fiscal 2022 and 2023. The premises for the proposed new restaurants are expected to be leased.

The company also intends to pay around ₹75 crore outstanding borrowing obtained by the company. As of November 2020, net debt of the company stood at ₹148.10 crore.

For fiscal year 2020, the company reported a revenue of ₹846.97 crore against ₹739.02 crore a year ago. Net loss for the period stood at ₹32.93 crore versus ₹38.39 crore.

As of December, the company had 164 restaurants owned and operated-- 147 Barbeque Nation restaurants across 77 cities in India, six international restaurants across four cities outside India and 11 Italian restaurants across three metro cities in India .