Casual dining chain Barbeque Nation Hospitality may come out with its initial share sale next week, merchant banking sources said on Friday. Barbeque Nation Hospitality is backed by private equity investor CX Partners and renowned stock market investor Rakesh Jhunjhunwala’s investment firm Alchemy Capital, as per a PTI report.
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, the sources said.
The company has already raised Rs 150 crore through a pre-IPO placement from Xponentia Capital and Jubilant Foodworks, they added.
Proceeds of the issue will be utilised to fund the company’s capital expenditure for expansion, besides prepayment or repayment of certain borrowings and expenses related to general corporate purposes.
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, as per PTI.
The total operating revenue of the company in FY20 was Rs 850.8 crore and the CAGR from FY17 to FY20 was at 19.5 per cent.
Barbeque Nation Hospitality, which filed preliminary papers in February last year, received Sebi’s approval in July 2020 to float the IPO.
The issue is being managed by IIFL Securities, Axis Capital, Ambit Capital and SBI Capital Markets.
Earlier in 2017, the company had filed IPO papers with Sebi seeking to raise Rs 700 crore. However, the regulator kept the processing of the company’s proposed IPO in abeyance, “pending regulatory action for past violations”. It finally approved the IPO plan in January 2018.
However, the company did not launch the initial share-sale due to averse market conditions.
Barbeque Nation Hospitality owns and operates Barbeque Nation Restaurants, currently operating at 138 outlets across India and 7 outlets in the UAE, Oman and Malaysia.
