Barbeque Nation IPO to open on Wednesday: Here’s all you need to know

New Delhi: The sale of Barbeque Nation’s shares will open for subscription on Wednesday. The sale will be done through an initial public offering (IPO) and the three-day public issue period will conclude on Friday, March 26. Barbeque Nation Hospitality is backed by Indian conglomerate Rakesh Jhunjhunwala through his investment firm Alchemy Capital along with private equity investor CX Partners.

The company had earlier raised ₹150 crores through a pre-IPO placement from Xponentia Capital and Jubilant Foodworks. The preliminary papers for IPO were filed in February 2020 after which the company received the approval to float its IPO from the Securities and Exchange Board of India (SEBI) approval in July 2020.

The company tried one time earlier also when they it filed IPO papers with SEBI seeking to raise ₹700 crore in 2017. But the processing of the company’s proposed IPO was kept in abeyance “pending regulatory action for past violations”. SEBI finally approved the IPO plan in January 2018, but the company didn’t go with go forward with their plan due to adverse market conditions.

All you need to know about Barbeque Nation’s IPO:

Barbeque Nation Hospitality has fixed a price band of ₹498-500 per share for its initial share sale. The IPO is expected to fetch ₹453 crore through the upper range of their price band.

Barbeque Nation’s IPO comprises a fresh issue of shares worth ₹180 crore along with an offer-for-sale of around 54,57,470 equity shares.

Equity shares amounting up to ₹2 crore have been reserved for eligible employees.

The company plans to use the funds raised through this IPO for the expansion  and opening of new restaurants. The company also plans to repay or prepay certain borrowings and expenses related to general corporate purposes.

IIFL Securities, Axis Capital, Ambit Capital and SBI Capital Markets are the ones that are managing this issue.

Promoters of the company are Sayaji Hotels, Sayaji Housekeeping Services, Kayum Dhanani, Suchitra Dhanani and Raoof Dhanani. It is backed by CX Partners, who made their first investment in 2013 and then again in 2015.

The promoters hold 60.24 per cent, CX Partners owns 33.79 per cent and Jhunjhunwala’s Alchemy Capital holds 2.05 per cent of the company. In FY20, the total operating revenue of the company was ₹850.8 crore while the CAGR from FY17 to FY20 was at 19.5 per cent.