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IPO of Barbeque Nation! Will it Satisfy the Investors as its Buffet?

What Barbeque Nation company do?

 Barbeque Nation Restaurants, one of the leading casual dining restaurant chains in India, With International Barbeque Nation Restaurants chains across different countries.

Toscano Restaurants and UBQ by Barbeque Country are both owned and operated by the company only. SHL, one of their founders, opened the first Barbeque Country Restaurant in 2006.

From a single restaurant in Fiscal 2008, It has gradually extended, owned and operated Barbeque Nation Restaurant network Barbeque Country has 138 outlets in India, 5 in the UAE, 1 in Malaysia and 1 in Oman. A ‘fixed price everything you can eat’ menu is run by the company through its outlets.

Growth potential in company and sector :

  • The chain is 14-year old and throughout its presence has been reasonably successful. The general downturn in the restaurant market, however, could cap the potential value that could be unlocked through this IPO. Despite being among the worst affected due to COVID 19, the restaurant & hospitality sector has considerable potential in a rising economy such as India. With the increase of nuclear families, shifting preferences, increasing urbanisation with rising disposable income coupled with strong growth of e-commerce platforms related to food, a growth-promoting player such as Barbeque Nation would benefit in the future.
  • If the IPO is priced correctly, both retail and institutional investors might draw a lot of interest, contributing to a good listing on the stock exchanges.

Promoters and Investment by Rakesh Jhunjhunwala’s Investment Firm :

Source : http://www.999stocks.com
  • Sayaji Hotels, Sayaji Housekeeping Services, Kayum Dhanani, Raoof Dhanani and Suchitra Dhanani are the promoters of the group and are funded by private equity firm CX Partners, which made its first transaction in 2013 and again in 2015.
  • The promoters own 60.24 per cent, CX Partners owns 33.79 percent and the investment company Alchemy Capital of famous financial sector investor Rakesh Jhunjhunwala retains 2.05 percent in the business.
  • The IPO size will be roughly between Rs 1,000 crore-1,200 crore, according to market sources.
  • IIFL Shares, Axis Capital, Ambit Capital and SBI Capital Markets are handling the IPO.

 

Strength in the company :

  • In the rapidly rising CDR market, Barbeque Nation is one of the fastest growing and commonly known bbq brands in India.
  • The steady rise in covers and APC contributes to average bill size growth for a comparatively high proportion of overall weekday sales revenues and lunch covers.
  • Attractive deals focused on continuous creativity in the menu and client focus
  • Solid business processes and back-end processes that contribute to successful operations
  • Experienced workers and a value-oriented corporate ethos driven by some of their promoters and their senior management team, bringing expertise from well-known hotel brands
  • The good financial condition with a proven record of increase in revenues

IPO of Barbeque Nation :

How do I apply for the IPO of Barbeque Country Hospitality? You may use ASBA to apply for the Barbeque Nation IPO available in your bank account. By choosing Barbeque Nation IPO in the Invest segment, simply go to the online bank login and apply via your bank account. The other choice is to use the IPO of Barbeque Nation via the download of IPO forms via NSE and BSE. You can also reserve your money with your broker to apply for the Barbeque Nation IPO. After 10-12 days, you will get the information about your allotment status.

Barbeque Nation Hospitality IPO Allotment Status :

 You will find this IPO’s Allotment Status on the BSE website or with your broker gave a link. Allocation of Equity Shares according to the Fresh Issue and pass to active Bidders of the Proposed Shares will be available on the BSE website. However, the state of the allotment has not yet been revealed For Barbeque nation IPO

IPO Price Band / Cash Price Band of Barbeque Nation Hospitality :

Each share’s face value is Rs.5, and the IPO’s cash price is [Yet to disclosed].

IPO Sharing offering of Barbeque Nation :

Fresh Issue: their company’s Fresh Issue of [Yet to disclosed] Equity Shares of Rs.10 each at a price of [Yet to disclosed] per share of equity totalling Rs.2,750 million,

Net Offer: The Offer without the Employee Reservation Part

OFS: Sale offer comprises of up to 9,822,947 Equity Shares with a nominal valuation of Rs.5 each for cash at a price of Rs.[Yet to disclosed] per Equity Share of Rs.[Yet to Disclosed] Million aggregated.

Financial Statement of Barbeque Nation :

Amount (in INR & Million)
30-Sep-1931-Mar-19Mar-1831-Mar-17
Total Assets8,597.328,190.857,231.605,288.23
Total Revenue4,242.507,425.415,904.484,985.81
Total Expense3,353.245,931.544,500.803,768.48
Profit After Tax(93.64)(383.86)(58.00)39.56

Earnings per Equity Share (in Million)

Amount (in INR & Million)
30-Sep-19Mar-1931-Mar-1831-Mar-17
Basic & Diluted(3.35)(14.45)(2.51)1.58

 

Barbeque Nation Hospitality- Development Prospects

The CDR market is one of the fastest-growing segments in the Indian restaurant industry and is estimated to expand at a CAGR of around 20.00 % from fiscal 2019 to fiscal 2024.

How the IPO money will be used by Barbeque nation

The proceeds of the issue will be used for part or complete redemption of an unpaid debt of Rs 205 crore and general corporate purposes.

In the development of the company and expansion

Should you Apply for barbeque nation IPO?

With reference to given information about the company promoters and growth prospect in the company and in the sector you can take advise with your financial advisor to invest in the company. The consolidated financial statements will also help to make the decision.

Different IPOs With Barbeque nation in 2021 in medium cap segment

Issuer CompanyIPO Size (Rs.)Price Band (Rs.)Issue Date
 Barbeque Nation350 Cr.Upcoming
BMW Ventures Limited IPO400 Cr.Upcoming
Chartered Speed IPO250 Cr.Upcoming
Suratwwala Business IPO6.9 Cr.155-Aug-20

Click here to view all upcoming IPOs in 2021

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