Indian dining chain Barbeque Nation Hospitality, after a failed attempt at public markets over three years ago, will once again go for its initial public offering (IPO). It will open for public subscription on March 24. The company which runs restaurant chains Barbeque Nation, Toscano and UBQ by Barbeque Nation Restaurant, has issued shares worth Rs 180 crore and an offer for sale (OFS) close to 54,57,470 equity shares.
The company has fixed a price band of Rs 498 to Rs 500 per share for its initial sale offer, which will close on March 26. Equity shares aggregating up to Rs 2 crore, have been reserved by the company for eligible employees.
However, the company hopes to raise close to Rs 453 crore at the upper end of the price band. The company has already raised Rs 150 crore through a pre-IPO placement from Xponentia Capital and Jubilant Foodworks, the parent company of Domino’s Pizza in India. It is also backed by CX Capital, a private equity firm, and Alchemy Capital, the investment firm headed by stock market expert Rakesh Jhunjhunwala, CNBCTV18 reported.
The company aims to utilise the proceeds from the issue to fund its capital expenditure for opening of new restaurants and prepayment/repayment of certain borrowings and expenses related to general corporate purposes.
Barbeque Nation Hospitality filed its preliminary papers in February 2020 and received Sebi's approval in July last year to float the IPO. IIFL Securities, Axis Capital, Ambit Capital and SBI Capital Markets, will manage the IPO.
As of December last year, Barbeque Nation Hospitality operates 147 outlets across India and six outlets across three countries – the UAE, Oman and Malaysia. The company reported a total operating revenue of the company in FY20 was Rs 850.8 crore and the CAGR from FY17 to FY20 was at 19.5 per cent.