Barbeque Nation Hospitality initial public offer (IPO) was subscribed 5.98 times on last day on March 26. The issue received bids for 2.99 crore equity shares against the offer size of 49.99 lakh equity shares. Retail investors submitted bids 13.13 times the reserved portion, while that of non-institutional investors was subscribed 3.10 times.
Employees portion was booked 1.02 times. The portion set aside for qualified institutional buyers witnessed a subscription of 5.11 times. The issue size was reduced to 49.99 lakh equity shares from 90.71 lakh equity shares after the company collected Rs 203 crore from anchor investors on March 23.
The casual dining chain had fixed a price band of Rs 498-500 per share for the IPO . The public issue was opened on March 24. The firm plans to raise Rs 453 crore at the upper end of the price band. Shares of the firm could be bought in a minimum lot size of 30.
To bid for one lot in the IPO, one would have to spend Rs 15,000. A retail investor could apply for up to 13 lots or 390 shares by spending Rs 195,000. Allotment of shares in the IPO is likely to be held on April 1, 2021 and may debut on BSE and NSE on April 7.
The IPO comprised fresh issue of shares worth Rs 180 crore and an offer-for-sale of up to 54,57,470 equity shares aggregating up to Rs 272.87 crore. Equity shares aggregating up to Rs 2 crore were reserved for eligible employees.
The company has already raised Rs 150 crore through a pre-IPO placement from Xponentia Capital and Jubilant Foodworks. Proceeds from the issue will be utilised to fund the company's capital expenditure for expansion and opening of new restaurants besides, prepayment or repayment of certain borrowings and expenses related to general corporate purposes.