Barbeque Nation Restaurants is set to raise funds from the capital market through an initial public offering (IPO). The IPO will be open for subscription on March 24 and will close on March 26.
The company mostly will keep the price band at Rs 498-500 a piece. The net proceeds will be used to set-up new Barbeque Nation Restaurants and other general corporate purposes.
The public issue comprises a fresh issue of Rs 180 crore and an offer for sale of 54.57 lakh equity shares by shareholders Sayaji Housekeeping Services, Azhar Dhanani, Sadiya Dhanani, Sanya Dhanani, Tamara, Aajv Investment Trust and Menu Private Limited, stated a Moneycontrol report.
The company has reserved 75 percent of the total book size for qualified institutional buyers, 10 percent for retail investors and the remaining 15 percent for non-institutional investors.
According to Barbeque Nation IPO- Second Addendum, the company has raised Rs 149.97 crore by selling 59.51 lakh equity shares through its pre-IPO placement. From that, an amount of Rs 84.8 crore has been utilised for repayment of loans of the Company and an amount of Rs 35.1 crore has been spent on general corporate purposes. “Pending utilisation, the balance funds have been parked in fixed deposits with scheduled commercial banks and will be utilised for repayment of debt of the Company and its subsidiaries as applicable.”
The company has reserved 75 per cent of the total book size for qualified institutional buyers, 10 percent for retail investors and the remaining 15 per cent for non-institutional investors.
It currently operates 147 Barbeque Nation Restaurants (including opened, temporarily closed and under construction outlets) across 77 cities in India and six International Barbeque Nation Restaurants across three countries namely UAE, Oman, Malaysia.
The chain has diversified its offering by acquiring a stake in Red Apple Kitchen which owns Toscano, a casual dining Italian restaurant chain operating in Pune, Bengaluru and Chennai. The company has further extended its offerings by introducing UBQ by Barbeque Nation offering A-la-Carte meals catering to the value seeking consumer segment.