Barbeque Nation IPO Subscribed 5.98 Times

Barbeque-Nation Hospitality Limited, one of India’s leading casual dining restaurant chains (in terms of outlet count as on September 30, 2020) as per Technopak Report; received bids of 2,99,01,510 shares against the offered 49,99,609 equity shares, as per the 5:00 pm data available on the bourses.

The portion reserved for retail investors was subscribed 13.13 times. While the Qualified Institutional Buyer category was subscribed 5.11, the Non-Institutional Investor category was subscribed 3.10 times.  The employee category was subscribed 1.02 times.

While Prabhudas Lilladher and Nirmal Bang who recommended to subscribe to the issue basis the brand’s robust revenue growth and consistent progress in covers other well established brokerage houses like Kotak Securities, ICICI Direct, Angel Broking, Equirius, Ventura have highlighted positive aspects of the Company like widely recognized restaurant brand, strong emphasis on customer experience, pioneering the ‘Over The Table Barbeque' concept, integrated digital ecosystem for app and reservations, consistent cover growth in recent fiscals, strong presence in the Indian market and value-oriented business culture amongst others.

With the reducing COVID cases in the country, progress made in vaccine development, clubbed with government official data indicating that India might have reached the peak of COVID 19 cases, opening up of economy is expected in the near future. It is estimated that by Q2 FY 2022, the Food Services Market is expected to regain almost 99% of the market on a base of 2020 and by Q3 and Q4 it is estimated to be 110% of the base of FY2020.

The IPO was a fresh issuance of equity shares of Rs 5 face value, aggregating up to Rs 180 cr and an offer for sale of up to 54,57,470 equity shares of face value of Rs 5 each by the selling shareholders. Equity shares aggregating up to Rs. 2 crore was reserved for eligible employees.

As of December 31, 2020, BNHL operated 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 and Malaysia. The company diversified its offering by acquiring 61.35% stake (on a fully diluted basis) in Red Apple Kitchen Consultancy Private Limited which currently owns and operates Italian restaurants under the brand name “Toscano”, a casual dining Italian restaurant chain operating in Pune, Bengaluru and Chennai, “La Terrace” and “Collage”. It further extended its offerings by introducing UBQ by Barbeque Nation to provide a-la-carte Indian cuisine in the value segment and has also launched “Barbeque-in-a-Box” “Grills in a Box” “Meals in a Box” in June 2020 as delivery offerings.