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Barbeque-Nation makes tepid debut

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Capital Market
Last Updated : Apr 07 2021 | 10:31 AM IST

Shares of Barbeque-Nation Hospitality were trading at Rs 516.95 at 10:08 IST on the BSE, a premium of 3.39% over the initial public offer (IPO) price of Rs 500.

The stock was listed at Rs 492, a discount of 1.6% to the IPO price. So far, the stock hit a high of Rs 517.90 and low of Rs 481.35. On the BSE, 2.47 lakh shares were traded on the counter so far.

The IPO of Barbeque-Nation Hospitality was subscribed 5.98 times. The issue opened for bidding on 24 March 2021, and closed on 26 March 2021. The price band for the IPO was set at Rs 498-500 per share. The issue comprised of fresh issue of up to Rs 180 crore and an offer for sale of 54,57,470 equity shares.

Out of net proceeds from the fresh issue of Rs 180 crore, an amount of Rs 54.62 crore is proposed to be utilized for capital expenditure for expansion and opening of new restaurants by the company; and Rs 75 crore is proposed to utilize for prepayment or repayment of all or a portion of certain outstanding borrowings availed by the company on a consolidated basis; and balance for general corporate purposes. The company proposes to add 20 new Barbeque Nation Restaurants in FY2022 and another 6 Barbeque-Nation Restaurants in FY2023.

Barbeque-Nation Hospitality is one of India's leading casual dining restaurant chains, which owns and operates Barbeque-Nation Restaurants and International Barbeque-Nation Restaurants. It also owns and operates Toscano Restaurants and UBQ by Barbeque-Nation Restaurant.

The first Barbeque-Nation Restaurant was launched in 2006 by one of the promoters, Sayaji Hotels (SHL), while the company launched its first Barbeque-Nation Restaurant in 2008 and, subsequently, acquired five Barbeque-Nation Restaurants owned by SHL in 2012.

On a consolidated basis, the company reported a net loss of Rs 100.65 crore and revenue of Rs 201 crore in the eight months ended on 30 November 2020.

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First Published: Apr 07 2021 | 10:09 AM IST

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