The Rs 452 crore initial public offering (IPO) of Barbeque Nation Hospitality was oversubscribed 1.6 per cent on the second day of the issue so far. The offer received bids for 82 lakh equity shares against the offer size of 49.99 lakh equity shares, as per data available on National Stock Exchange. The quota for qualified institutional buyers (QIB) was subscribed 37 per cent, while that of non-institutional investors (NII) by 8 per cent. The issue saw surge in demand from retail investors as portion reserved for them was subscribed 7.92 times and quota for employees was booked 47 per cent.
On first day of bidding, the IPO of Rakesh Jhunjhunwala-back Barbeque Nation Hospitality received bid for 66.46 lakh shares. The issue was oversubscribed 1.33 times, while quota for retail investors was subscribed 3.48 times while the segment for Qualified Institutional Buyers (QIBs) and Non Institutional Investors reported muted response on first day of the bidding.
The price band of the offer was fixed at Rs 498 - Rs 500 per share. The IPO, which closes on March 26, comprises a fresh issue of Rs 180 crore and an offer for sale of up to 54,57,470 equity shares by existing shareholders. 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.
The company has reserved 75 per cent of the issue for qualified institutional buyers, 10 per cent for retail investors and the remaining 15 per cent for non-institutional investors. Besides, the company has reserved Rs 2 crore worth shares for its employees.
Ahead of IPO, the casual dining chain has raised Rs 203 crore from anchor investors, which include Goldman Sachs India Ltd, Nomura Funds Ireland Public Limited Company, Fidelity Investment Trust, SBI Mutual Fund (MF), ICICI Prudential MF, Kotak MF, Aditya Birla Sunlife MF, HDFC MF, HDFC Life Insurance Company, Kuber India Fund, Pioneer Investment Fund and UPS Global Trust.