Barbeque Nation IPO appetising, but avoid, say analysts

Barbeque Nation IPO: The promoters hold 60.24 per cent stake, CX Partners owns 33.79 per cent and Rakesh Jhunjhunwala's investment firm Alchemy Capital holds 2.05 per cent in the company

The Rs 453-crore initial public offering (IPO) of casual dining chain Barbeque Nation Hospitality opened for subscription on Wednesday. The IPO comprises fresh equity worth Rs 180 crore and secondary share sale worth Rs 273 crore. The price band for the IPO is set at Rs 498-Rs 500 per share. The issue will close on March 26.

Proceeds of the fresh issue will be utilised to fund the company's capital expenditure for expansion, besides prepayment or repayment of certain borrowings and expenses related to general corporate purposes.

About the company

Barbeque Nation Hospitality owns and operates Barbeque Nation Restaurants. It