Barbeque Nation Hospitality will launch its initial public offer (IPO) on March 24. The casual dining chain has fixed a price band of Rs 498-500 per share. The public issue will conclude on March 26. The firm aims to raise Rs 453 crore at the upper end of the price band. Shares of the firm can be bought in a minimum lot size of 30.
To bid for one lot in the IPO, one will have to spend Rs 15,000. A retail investor can 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 comprises 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 have been 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.
Barbeque Nation Hospitality is backed by private equity investor CX Partners and renowned stock market investor Rakesh Jhunjhunwala's investment firm Alchemy Capital. The company's promoters are Sayaji Hotels Limited, Sayaji Housekeeping Services, Kayum Dhanani, Raoof Dhanani, and Suchitra Dhanani.
The promoters hold 60.24 per cent, CX Partners owns 33.79 per cent and Jhunjhunwala's investment firm Alchemy Capital holds 2.05 per cent of the company. Link Intime India Private Ltd is the registrar for the IPO and IIFL Securities, Axis Capital, Ambit Capital and SBI Capital Markets are merchant bankers to the issue.
Barbeque Nation Hospitality had filed preliminary papers for the IPO in February last year. It received Sebi's approval in July 2020 to float the IPO. Barbeque Nation Hospitality, owns and operates Barbeque Nation Restaurants. It also operates Toscano restaurants and UBQ by Barbeque Nation Restaurant.