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Speciality Restaurants plans expansion in smaller cities

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BS Reporter Kolkata
Last Updated : Jan 21 2013 | 4:10 AM IST

Speciality Restaurants (SRL), the fine dining chain in India with its flagship brand Mainland China is eyeing expansion in three phases with 45 new restaurants over the next three years.

“The company is currently focusing on Pan India expansion targeting the tier II and Tier III cities,” Anjan Chatterjee, MD, SRL, said.

SRL plans to penetrate into tier III cities on the lines of ‘Franchise owned company operative’, ie, the franchisee would provide space and interior while the company would ensure the management.

However, owing to the global financial slowdown, the company, has kept its foreign ambitions on hold. Currently, SRL has one Mainland China outlet in Dhaka, Bangladesh.

The company launched its initial public offer of 11.74 million shares on Wednesday. It plans to raise Rs 171.4 crore at lower end of price band of Rs 146-155 a share and Rs 181.96 crore at higher band.

It has received commitment of Rs 26.41 crore from five anchor investors, which are Morgan Stanley Mutual Fund, International Opportunities Funds-India Equity, SBI Magnum Global Fund, Reliance Equity Opportunities Fund and HSBC India Alpha (Mauritius). It has finalised allocation of 1.76 million shares to five investors at Rs 150 a share - an average of price band of Rs 146-155.

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Besides expansion, money raised from its public offering will also be used in the repayment of the long term debts. SRL is to expand its flagship restaurants ‘Mainland China’, ‘Oh Calcutta’, ‘Sigree’, ‘Machaan’ and its confectionery brand ‘Sweet Bengal’.

The company is also planning to open a food plaza in Rajarhat in Kolkata and Pune that would offer specialty cuisine of various segments under one roof.

The company also said that they are keen to open Italian and Mediterranean specialty outlets targeting the younger generation customer.

According to Chatterjee, the company would introduce menu card on iPad in all its outlets by next three months.

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First Published: May 17 2012 | 12:29 AM IST

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