Barbeque Nation’s IPO Receives Muted Response On Day 2
(Source: Barbeque Nation Twitter handle)

Barbeque Nation’s IPO Receives Muted Response On Day 2

The initial public offering of Barbeque Nation Hospitality received muted response from investors on second day of the issue after getting fully subscribed on the opening day.

The restaurant chain’s issue—the nineteenth so far in 2021—was subscribed 1.98 times as of 5 p.m. on March 25, according to exchange data. While retail investors continued to lap up shares of the company on second day, institutional investors’ subscription numbers from first day remained unchanged.

Subscription Details:

  • Institutional investors: 0.37 times.
  • Non-institutional investors: 0.10 times.
  • Retail investors: 9.66 times.
  • Employees: 0.70 times.

The Rs 452.87-crore IPO—set to end on March 26—comprises a fresh issue of Rs 180 crore and an offer-for-sale worth Rs 272.85 crore, according to its red herring prospectus. The price band for the issue has been fixed at Rs 498-500 apiece.

Barbeque Nation plans to use Rs 54.6 crore from the issue as capital expenditure to expand and open new restaurants, and Rs 75 crore towards prepayment or repayment of all or a portion of outstanding borrowings on a consolidated basis.

After the IPO, promoter shareholding in restaurant chain will decline from 47.8% to 38.1%.

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

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