Barbeque Nation To Sell Shares At Rs 498-500 Apiece In IPO

Barbeque Nation Hospitality Ltd. will sell shares at Rs 498-500 apiece at its maiden offer that opens on Wednesday, joining last year’s IPO rush that extended into 2021.

The initial public offer by the restaurant chain that grills chicken tikka to potatoes on the table comprises a fresh issue of Rs 180 crore and an offer-for-sale by Sayaji Housekeeping Services Ltd., Azhar Dhanani, Sadiya Dhanani, Sanya Dhanani, Tamara Pvt., AAJV investment Trust and Menu Pvt. worth Rs 272.85 crore, according to its red herring prospectus. The IPO will close on March 26.

The company will use the proceeds from the fresh issue to open 26 restaurants in the financial years ending March 2022 and 2023 and de-leverage its balance sheet.

IIFL Securities Ltd., Axis Capital Ltd., Ambit Capital Pvt. and SBI Capital Markets Ltd. are the book-running lead managers to the issue.

This comes at a time the participation of retail investors in equity markets in India and around the world has increased following the pandemic-induced lockdowns.

Barbeque Nation operates 147 namesake restaurants, including opened, temporarily closed and under construction outlets, across 77 cities in India. Barbeque Nation was the first to introduce the format of ‘over the table barbeque’ concept in Indian restaurants. It also operates six international Barbeque Nation restaurants across three countries — the U.A.E., Oman and Malaysia.

Its revenue from operations stood at Rs 201 crore in the April-November 2020 period, while it reported a net loss of Rs 100.6 crore during the period.

Watch: IPO Adda With Barbeque Nation's CEO Rahul Agrawal