Barbeque Nation IPO Review 2021: The Barbeque Nation Hospitality IPO opens on 24th March and closes on 26th March 2021. In this article, we cover the Barbeque Nation IPO review and look into important IPO information and find out the possible prospects of the company. Stay with us for the next 5 minutes to get an answer to the question – Should you subscribe?
Table of Contents
Barbeque Nation IPO Review – About the Company
Barbeque Nation Hospitality is the owner of the casual dining restaurant Barbeque Nation Restaurants, Toscano Restaurants and UBQ. They opened their first restaurant in the year 2008. Over the years they have grown to open 138 Barbeque Nation Restaurants in 73 cities across the country.
The company also acquired the brand “Red Apple” which operates 9 Italian restaurants under the name Toscano and 1 restaurant by the name “La Terrace” in Bengaluru and Chennai. Their UBQ brand currently caters to the restaurant’s delivery segment.
They also have expanded globally by opening 7 outlets in the UAE, Oman and Malaysia. Its sheer size has made it one of the leading players in the organised casual dining segment.
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Key IPO Information of Barbeque Nation
The promoters of the company include the Dhanani family which consists of Azhar Dhanani, Sadiya Dhanani, Sanya Dhanani, Kayum Dhanani, Raoof Dhanani, and Suchitra Dhanani through their listed flagship Sayaji Hotels. They hold a 45.7% stake in Barbeque Nation through Sayaji Hotels Limited and Sayaji Housekeeping Services Limited.
The company is also backed by CX Partners which owns 21.72% of the firm. They are also backed by ace investor Rakesh Jhunjhunwala‘s investment firm Alchemy Capital holds 2.07%.
The issue comprises both an Offer for Sale and a Fresh Issue. The Offer for Sale includes a sale of 54,57,470 equity shares by shareholders Sayaji Housekeeping Services, Azhar Dhanani, Sadiya Dhanani, Sanya Dhanani.
The OFS also includes the sale of investment by other investors like Tamara, Aajv Investment Trust and Menu Private Limited. Despite the OFS forming a major portion ace investor Rakesh Jhunjhunwala has stated that he will remain invested in the company.
The promoters have appointed IIFL Securities, Axis Capital, Ambit Capital and SBI Capital Markets as the lead managers to the issue. Link Intime India Private Ltd. has been appointed as the registrar to the issue.
| Particular | Details |
|---|---|
| IPO Size | ₹452.87 Cr |
| Fresh Issue | ₹180.00 Cr |
| Offer For Sale(OFS) | ₹272.87 Cr |
| Opening Date | Mar 24, 2021 |
| Closing Date | Mar 26, 2021 |
| Face Value | ₹5 per equity share |
| Price Band | ₹498 to ₹500 per equity share |
| Lot Size | 30 Shares |
| Minimum Lot Size | 1 |
| Maximum Lot Size | 13 |
| Listing Date | Apr 7, 2021 |
It is also important to note that the company had filed for an IPO in 2017 to raise Rs. 700 crores. The processing of the IPO however was kept in temporary suspension by the SEBI due to pending regulatory action for past violations.
The IPO was approved by the SEBI in 2018 but the company did not go ahead with the IPO due to unfavourable market conditions. In the meantime, the company raised capital from Rs 149.97 crore in its pre-IPO placement.
Barbeque Nation IPO Review – Purpose of the IPO
The proceeds from the IPO will be used for:
- Repayment/Prepayment of all or a part of the company’s outstanding borrowings.
- Expansion purposes and other general corporate purposes.
- For offer for sale.
Closing Thoughts
The IPO opens on 24th March and closes on 26th March 2021. For retail investors, it can be a good opportunity to look into the company’s future prospects and apply for the IPO if they believe in the products and growth prospects of Barbeque Nation.
That’s all for this post. Do let us know what you think of the Barbeque Nation IPO review. Are you planning to apply for this IPO or not? Comment below. Cheers!
Aron, Bachelors in Commerce from Mangalore University, entered the world of Equity research to explore his interests in financial markets. Outside of work, you can catch him binging on a show, supporting RCB, and dreaming of visiting Kasol soon. He also believes that eating kid’s ice-cream is the best way to teach them taxes.
