Casual dining chain Barbeque Nation re-files for IPO to raise Rs 1,000 crore

Barbeque Nation Hospitality Ltd, the single largest player in organised dining space, has refiled a fresh draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO).

The issue comprises a fresh issue of shares of Rs 275 and an offer for sale of up to 98.22 lakh equity shares. The company may consider doing a pre-IPO placement not exceeding Rs 150 crore, according to the DRHP.

Market sources said the issue size will be between Rs 1,000 crore to 1,200 crore. The proceeds will be utilised to repay an outstanding borrowing of Rs 205 crore in part or full and general corporate purposes.

The promoters of Barbeque Nation are Sayaji Hotels, Sayaji Housekeeping Services, Kayum Dhanani, Raoof Dhanani and Suchitra Dhanani and is backed by private equity investor CX Partners which made its first investment 2013 and again in 2015.

IIFL Securities, Axis Capital, Ambit Capital and SBI Capital Markets are the book running lead managers to the issue.

Up to 50 per cent of the offer will be available for allocation to qualified institutional buyers. Further, up to 15 per cent of the offer will be available for allocation on a proportionate basis to non-institutional bidders and 35 per cent for allocation to retail individual bidders.

Since its earlier filing in August 2017, the fast-growing restaurant chain has opened up 59 new outlets and is currently operating 138 outlets across 78 cities across 24 states in India and 7 outlets in UAE, Oman and Malaysia.

The company has seen 14.3 per cent compound annual growth rate increase in its in dining covers in India which has grown from 6.86 million in FY17 to 8.96 million in FY19, pillared by referrals and recommendations of customers.