Bangalore based Barbeque Nation Hospitality Limited, one of India’s leading casual dining restaurant chains, has filed its Draft Red Herring Prospectus (DRHP) with the market regulator SEBI seeking permission for its Initial Public Offering (IPO). Barbeque Nation IPO will be a mix of fresh shares and sale by existing investors. In total, the upcoming IPO is likely to raise around INR7 billion (INR700 crore).
IIFL Holdings Limited, Edelweiss Financial Services Limited, Jefferies India Private Limited and SBI Capital Markets Limited are the book running lead managers to the issue and Link Intime India Private Limited is the registrar.
Barbeque Nation IPO comprises of a fresh issue of up to INR2 billion (INR200 crore) and an Offer For Sale (OFS) of up to 6,179,000 equity shares. The OFS will be led by private equity investor CX Partners which holds slightly above 23% in the company through Tamara Private Limited and Aajv Investment Trust. Tamara Private Limited will sell 4,729,200 equity shares while Aajv Investment Trust plans to offload 109,800 equity shares.
Members from promoter group Azhar Dhanani, Kayum Dhanani, Sanya Dhanani and Sadiya Dhanani will also partially offload their shareholding through the IPO.
Net proceeds from Barbeque Nation IPO are proposed to be utilized towards – setting-up of new Barbeque Nation restaurants in India (INR68.5 crore), repayment or prepayment of loans of the company and subsidiaries (INR85 crore), and general corporate purposes.
The offer will include a reservation of up to 150,000 equity shares, for subscription by eligible employees.
Barbeque Nation IPO = ‘Over the table’ test
Established in 2006, Barbeque Nation has grown organically in the years. According to the draft prospectus, the restaurant chain had 81 outlets across the country in 42 cities as on 31 March 2017. In addition, it has one restaurant in Dubai and has also granted franchise rights for one of its Barbeque Nation restaurants.
It offers a variety of cuisines including Mediterranean, American, Asian and Indian, but is largely known for vegetarian and non-vegetarian Indian cuisine. The company is also famous for its ‘over the table barbeque’ concept which allows its guests to grill their own barbecues.