Jhunjhunwala-backed Barbeque Nation IPO opens today: Check price band, other details

The initial public offering (IPO) of Rakesh Jhunjhunwala-backed Barbeque Nation Hospitality opened for subscription today, March 24. The IPO, which closes on March 26, comprises a fresh issue of Rs 180 crore and an offer for sale of up to 54,57,470 equity shares by existing shareholders. The price band of the offer has been fixed at Rs 498 - Rs 500 per share. At the upper price band, the casual dining chain will garner Rs 452.87 crore from the IPO. Allotment of shares in the IPO is likely to be held on April 1 and market debut expected on April 7.

Ahead of IPO, the company has raised Rs 203 crore from anchor investors, which include Goldman Sachs India Ltd, Nomura Funds Ireland  Public Limited Company, Fidelity Investment Trust, SBI Mutual Fund (MF), ICICI Prudential MF, Kotak MF, Aditya Birla Sunlife MF, HDFC MF, HDFC Life Insurance Company, Kuber India Fund, Pioneer Investment Fund and UPS Global Trust.

Here's all you need to know about Barbeque Nation Hospitality IPO:

Open and close date

The initial share sale will open for public subscription on March 24 and close on March 26.

Issue size

The initial public offer comprises fresh issue of shares worth Rs 180 crore and an offer-for-sale of up to 54,57,470 equity shares.  

Price band

The company has fixed a price band of Rs 498- 500 per share for the issue. At the upper end of the price band, the offer is expected to fetch Rs 453 crore.

Lot size

Shares of the firm can be bought in a minimum lot size of 30. To bid for one lot in the IPO, one will have to spend Rs 15,000. A retail investor can apply for up to 13 lots  or 390 shares by spending Rs 195,000.

Quota for institutional, non-institutional and retail investors

The company has reserved 75 per cent of the issue for qualified institutional buyers, 10 per cent for retail investors and the remaining 15 per cent for non-institutional investors. Besides, the company has reserved Rs 2 crore worth shares for its employees.

Objective of IPO

The company intends to use net proceeds from the fresh issue to fund the company's capital expenditure for expansion, besides prepayment or repayment of certain borrowings and expenses related to general corporate purposes.

Promoters shareholding

The company is promoted by Sayaji Hotels, Sayaji Housekeeping Services, Kayum Dhanani, Raoof Dhanani and Suchitra Dhanani. It is backed by private equity firm CX Partners, which made its first investment in 2013 and again in 2015.  The promoters hold 60.24 per cent stake, CX Partners owns 33.79 per cent and Jhunjhunwala's investment firm Alchemy Capital holds 2.05 per cent in the company.

Financials

Barbeque Nation reported total operating revenue at Rs 850.8 crore in FY20, while the CAGR from FY17 to FY20 was at 19.5 per cent.

Book running lead managers to issue

IIFL Securities, Axis Capital, Ambit Capital and SBI Capital Markets are the book running lead managers to the public issue.

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Barbeque Nation IPO to open on March 24: Price band, lot size, issue size & other details