Barbeque Nation files for Rs 1,000-crore IPO to whittle away debt

The company's consolidated debt is pegged at Rs 225 crore

Indian casual dining chain Barbeque Nation Hospitality has filed for an initial public offering (IPO). The Bengaluru-based firm, which operates 138 outlets across 78 cities in India, is estimated to raise Rs 1,000 to Rs 1,250 crore through the IPO.

Promoted by Chennai’s Sayaji Housekeeping Services (SHKSL) and private equity firm CX Partners, Barbeque Nation will offer up to 9.82 million equity shares, including fresh share issues worth Rs 275 crore, the firm declared in its draft red herring prospectus. While up to 50 per cent of the shares will be available for allocation to qualified institutional investors, 35 per cent and 15 per cent will be available for retail investors and non-institutional bidders, respectively.

Shares from all its key owners — SHKSL (owns 45.09 per cent), CX Partners’ Tamara (21.71 per cent), Pace Private Limited (11.37 per cent), Kuyum Dhanani (4.64 per cent) and Rakesh Jhunjhulwala-backed Alchemy India (2.05 per cent) will be on offer. While IIFL Securities, Axis Capital and SBI Capital are among the book running lead managers.

According to the firm, the proceeds from the IPO will be used to bring down its debt and in general corporate purposes. Its consolidated debt is pegged at Rs 225 crore. It plans to list its shares at the BSE and the NSE.

Incorporated in 2006 as Sanchi Hotels in Indore, the firm got its present name two years later and moved its headquarters to Bangaluru in 2014.

Of its 138 outlets, 72 are located in metro cities, 21 in tier-I and 39 and six in tier-II and tier-III cities repectively, with South India being its largest market. It also operates seven stores in the UAE, Oman and Malaysia.