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Bengaluru-based Pecos Hotels and Pubs, a 26-year- old pub chain, known for its beer and retro rock music, is set to hit the capital markets to raise money to modernise its outlets. Pecos will list on the BSE Small and Medium Enterprise (SME) platform this week.
With an initial public offering (IPO) of 459,000 equity shares of Rs 10 each aggregating up to Rs 2.30 crore, it is arguably the first pure-play pub operator to tap the stock market for funds. The issue will open for subscription on Thursday at a fixed Rs 50 per share. The public issue will close for subscription on July 28.
“We had never used debt as an instrument to expand or for capital. We have always remained debt-free. Hence, we found listing on the SME platform as the best option,” said Charles Timms, promoter of Pecos Hotels and Pubs. “It will help Pecos become more organised and professionally-run, while also allowing for a slight expansion”.
The money will also be used for modernisation and expansion of its pubs. For FY15, till January 2015, it saw revenue of Rs 2.48 crore and operating profit of Rs 25.17 lakh, according to the company prospectus. During 2013-14, it had revenues of Rs 2.92 crore and a profit of Rs 8.24 lakh. During 2012-13, it had revenue of Rs 2.65 crore and operating profit of Rs 8.55 lakh.
With an initial public offering (IPO) of 459,000 equity shares of Rs 10 each aggregating up to Rs 2.30 crore, it is arguably the first pure-play pub operator to tap the stock market for funds. The issue will open for subscription on Thursday at a fixed Rs 50 per share. The public issue will close for subscription on July 28.
“We had never used debt as an instrument to expand or for capital. We have always remained debt-free. Hence, we found listing on the SME platform as the best option,” said Charles Timms, promoter of Pecos Hotels and Pubs. “It will help Pecos become more organised and professionally-run, while also allowing for a slight expansion”.
The money will also be used for modernisation and expansion of its pubs. For FY15, till January 2015, it saw revenue of Rs 2.48 crore and operating profit of Rs 25.17 lakh, according to the company prospectus. During 2013-14, it had revenues of Rs 2.92 crore and a profit of Rs 8.24 lakh. During 2012-13, it had revenue of Rs 2.65 crore and operating profit of Rs 8.55 lakh.
