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Barbeque Nation receives Sebi's approval to raise Rs 7 bn through IPO

According to merchant banking sources, the company is expected to raise Rs 7 billion through the IPO

Press Trust of India  |  New Delhi 

Barbeque Nation, IPO
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Casual dining chain Hospitality has received markets regulator Sebi's approval to raise an estimated Rs 7 billion through (IPO).

The company had filed its draft papers with in August last year and obtained "observations" from the regulator on January 5, 2018, the latest update with markets watchdog showed.

Securities and Exchange Board of India's (Sebi) 'observations' are very important for any company to launch public offer.

Barbeque-Nation Hospitality's comprises fresh issue of shares worth Rs 2 billion and an offer for sale of up to 6,179,000 equity shares, according to the draft red herring prospectus (DRHP).

The offer includes a reservation of up to 1.5 lakh equity shares for the company's employees.

Proceeds from the issue will be utilised towards setting-up of new restaurants in India, repayment of loans, and general corporate purposes.

According to merchant banking sources, the company is expected to raise Rs 7 billion through the

Earlier, the regulator had kept the processing of the company's proposed in abeyance "pending regulatory action for past violations".

IIFL Holdings, Edelweiss Financial Services, Jefferies India and SBI Capital Markets are the book running lead managers to the issue.

Hospitality, owns and operates Barbeque Nation Restaurants, has steadily grown its owned and operated restaurant network from a single restaurant in 2006-07 to 81 till June 30, 2017.

First Published: Mon, January 15 2018. 21:54 IST
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