Barbeque Nation Refiles IPO Papers With SEBI
Barbeque Nation Hospitality Ltd. has filed with the markets regulator a fresh draft red herring prospectus to raise Rs 1,000-1,200 crore via an initial public offering.
The Barbeque Nation IPO comprises a fresh issue of shares worth Rs 275 crore and an offer-for-sale of up to 98,22,947 equity shares, according to the DRHP filed with the Securities and Exchange Board of India.
The company may also consider a pre-IPO placement of Rs 150 crore.
Proceeds of the issue will be utilised to repay in part or full an outstanding borrowing of Rs 205 crore and for general corporate purposes.
According to market sources, the IPO size is likely to be between Rs 1,000-1,200 crore.
The company is promoted by Sayaji Hotels, Sayaji Housekeeping Services, Kayum Dhanani, Raoof Dhanani, and Suchitra Dhanani. It is backed by private equity firm CX Partners, which made its first investment in 2013 and second in 2015.
The promoters hold 60.24 percent in the casual dining restaurant chain, CX Partners owns 33.79 percent and serial investor Rakesh Jhunjhunwala's investment firm Alchemy Capital has 2.05 percent stake.
The Barbeque Nation IPO is being managed by IIFL Securities, Axis Capital, Ambit Capital, and SBI Capital Markets.
To be sure, the company had in 2017 filed IPO papers with SEBI to raise Rs 700 crore, but the markets regulator kept the offering in abeyance, "pending regulatory action for past violations", and finally approved the IPO plan in January 2018. But the initial share sale couldn’t be launched then due to adverse market conditions.
Barbeque Nation Hospitality owns and operates 138 eponymous restaurants in India seven outlets in the United Arab Emirates, Oman, and Malaysia.