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Barbeque-Nation Hospitality Ltd (BNHL), a casual dining restaurant chain, has fixed a price band of ₹498-500 per share for its ₹453-crore Initial Public Offering (IPO) which will open for subscription on Wednesday.
The IPO is a fresh issuance of shares of ₹5 face value totalling up to ₹180 crore and an Offer For Sale of up to 54.57 lakh shares by the selling shareholders. The company has reserved shares totalling up to ₹2 crore for employees.
About 75 per cent of the net offer would be allotted to Qualified Institutional Buyers, 15 per cent for non-institutional investors and 10 per cent for retail investors.
The IPO will close on Friday, March 26. IIFL Securities Ltd, Axis Capital Ltd, Ambit Capital Private Ltd and SBI Capital Markets Ltd are the book running lead managers to the issue.
BNHL proposes to utilise the net proceeds from the fresh issue towards expansion and opening new restaurants, repayment of debt, and general corporate purposes.
The first Barbeque Nation restaurant was launched in 2006 by one of the promoters, Sayaji Hotels Ltd (SHL). BNHL launched its first Barbeque Nation restaurant in 2008 and subsequently acquired five restaurants owned and operated by SHL in 2012.
As of December 31, 2020, BNHL currently operates 147 Barbeque Nation restaurants across 77 cities in India and six in the UAE, Oman and Malaysia.
As of December 31, 2020, the company provided delivery in 77 cities in India under UBQ by Barbeque Nation from its existing kitchen infrastructure. It has also launched ‘Barbeque-in-a-Box’ in June 2020 as one of its delivery products. This is in addition to two other products, ‘Grills in a Box’ and ‘Meals in our Box’, which are offered through delivery, among other offerings.
The promoters and the promoter group – including SHL, Sayaji Housekeeping Services Ltd, Kayum Dhanani, Raoof Dhanani and Suchitra Dhanani - hold a 47.80 per cent stake in BNHL and public shareholders own the remaining shares in BNHL. Following the IPO, the company’s shares will be listed both on BSE and NSE.
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