Barbeque Nations Hospitality Limited to launch the IPO on 24th of March 2021, 2nd IPO of the month where in Rakesh Jhunjhunwala holds stake in the company after Nazara Technology IPO. We are going through 10 points analysis which can help retail investors and traders to take decision whether to subscribe or not and also you will be able to judge whether the company is good for long term investment.
1. About Barbeque Nation
Barbeque Nation was founded in 2006 & currently own and operate 138 outlets in India, 5 outlets in UAE, 1 outlet in Malaysia and 1 outlet in Oman.
One of the leading casual dining chains in India, Barbeque Nation pioneered the concept of “over the table barbeque” live grills embedded in dining tables – allowing guests to grill their own barbecue’s right at their tables.
Indian cuisine is a natural part of the diet in the markets in which the Barbeque Nation Restaurants operate. Barbeque Nation continue to offer new menu options, both vegetarian and non-vegetarian, largely based on Indian cuisine and use seasonal customer preferences to introduce new dishes. Barbeque Nation also run popular food festivals at our Barbeque Nation Restaurants, thereby offering our customers a range of Indian and international cuisines.
Barbeque Nation was ranked 13th among best companies to work for in India across all categories by Economic Times “Great Places to Work” survey for 2019 conducted by Great Places to Work Institute. Barbeque Nation was also voted among the top ten employers within the Indian retail industry for 2019 by Great Places to Work and 14th among best large workplaces in Asia by Great Places to Work Institute.
The company is backed by Big Bull Rakesh Jhunjhunwala & Big Bull holds 2.04 % stake in Barbeque Nation.
2. IPO Dates
The bidding for Initial Public Offering (IPO) will begin on 24th March 2021 and the last date for subscribing this IPO is 26th March 2021.
3. Price Band
The price band for its public issue was fixed at Rs.498 to 500 per share.
4. Public Issue Size
The issue size is 452.87 crores approximately consists of a fresh issue of 182 crores and offer for sale by of Rs. 272.87 crores by promoters.
Barbeque Nation IPO Lot Size
The Barbeque Nation IPO market lot size is 30 shares. A retail-individual investor can apply for up to 13 lots (390 shares or ₹195,000).
5. Promoters of the company
Sayaji Hotels Limited, Sayaji Housekeeping Services Limited, Kayum Dhanani, Raoof Dhanani, and Suchitra Dhanani are the company promoters.
6. Objectives of the Issue
- To make prepayment/repayment of all or a part of the company’s outstanding borrowings availed on a consolidated basis.
- To meet general corporate purposes.
7. Company Financials
The summary of company financials is furnished as below
| Particulars | For the year/period ended (₹ in crores) | ||||
| 30-Nov-20 | 31-Mar-20 | 31-Mar-19 | 31-Mar-18 | ||
| Total Assets | 9,08.58 | 9,55.46 | 8,19.09 | 7,23.16 | |
| Total Revenue | 2,36.61 | 8,50.79 | 7,42.54 | 5,90.45 | |
| Profit After Tax | (1,00.65) | (32.93) | (38.39) | (5.80) |
8. Company Strengths
- One of India’s fastest-growing restaurant brands.
- Diversified offerings for both vegetarian and non-vegetarians.
- Experienced promoters and managers team.
- Healthy financial position with a proven track record of revenue growth.
9.Barbeque Nation IPO Tentative Timetable
The Barbeque Nation IPO open date is Mar 24, 2021, and the close date is Mar 26, 2021. The issue may list on Apr 7, 2021.
| IPO Open Date | Mar 24, 2021 |
| IPO Close Date | Mar 26, 2021 |
| Basis of Allotment Date | Apr 1, 2021 |
| Initiation of Refunds | Apr 5, 2021 |
| Credit of Shares to Demat Account | Apr 6, 2021 |
| IPO Listing Date | Apr 7, 2021 |
10. Conclusion Subscribe / Not ?
Net proceeds aggregating to ₹54.62 crore will be used for setting up 26 new Barbeque Nation Restaurants during fiscal 2022 and 2023. The premises for the proposed new restaurants are expected to be leased.
The company also intends to pay around ₹75 crore outstanding borrowing obtained by the company. As of November 2020, net debt of the company stood at ₹148.10 crore.
Big Bull Rakesh Jhunjhunwala’s investment firm Alchemy Capital holds 2.07%
Barbeque Nation was incorporated in 2006 and now functions as the country’s fastest-growing restaurant brand. It is one of the leading casual dining restaurant chains in the country and offers a wide variety of both vegetarian and non-vegetarian meals.
Covid-19 has hit to Barbeque Nations in Current financial year and affected the performance of the company in terms of revenue and profitability.
