Barbeque Nation lists on the bourses

 Barbeque Nation lists on the bourses, closes 18% up at Rs 590 per share

Barbeque-Nation Hospitality Limited one of India’s leading casual dining restaurant chains (in terms of outlet count as on September 30, 2020); listed on the NSE at Rs. 489.85, at a 2% discount over its issue price. The scrip got listed at BSE at Rs. 492 per share, a 1.6% per cent discount over its issue price of Rs 500.  The shares of the company at day end closed at Rs. 590.40 per share on BSE and Rs. 587.80 per share on NSE. The initial public offering was offered at a lower price band of Rs 498 per share and higher price band of Rs 500.

As per BSE, the total quantity traded stood at 8.96 lac shares with a delivery quantity percentage of 44.83%. Quantity traded and delivery percentage at NSE was approx. 54.20 lac shares and 37.87% respectively. Total Turnover (BSE+NSE) on Day 1 stood at Rs 354.11 crore.

The Market Capitalization of the Company post today’s closing price stood at Rs. 2216.53 crore as per BSE and Rs. 2206.77 crore as per NSE.

The offer aggregated upto Rs 180 cr fresh issue and OFS of upto 54,57,470 equity shares, which was opened from March 24 to 26, and had received 5.98 times bids, with the HNI quota (NII) receiving 3.10 times subscription, the QIB quota 5.11 times, the retail quota 13.13 times and employee quota 1.02 times.

Speaking on this momentous occasion Mr. Kayum Dhanani, Managing Director, Barbeque Nation Hospitality Ltd said, “We are extremely delighted to be part of the listed ecosystem in the country. This listing is the testimony to the strong foundation of our business model built on guest focus and employee focus culture. This is an important milestone in the Barbeque Nation journey and we will continue to focus on our strengths and profitably grow our network.”

Further to this, Mr. Rahul Agrawal, Chief Executive Officer & Whole Time Director, Barbeque Nation Hospitality Ltd said, “We are thankful to all our stakeholders for a great response to the IPO and listing of Barbeque Nation. This journey would not have been remotely complete without our team members who have worked extremely hard to deliver the results over last so many years. Despite the impact of Covid-19 on our sector, the resilience and perseverance of our team ensured that we bounce back stronger with the addition of a sustainable delivery business, agility to reduce costs and a strong balance sheet post equity capital raise.”

Grilled to Perfection: Barbeque Nation subscribed 5.98 times

 Grilled to Perfection: Barbeque Nation subscribed 5.98 times overall

Barbeque-Nation Hospitality Limited, one of India’s leading casual dining restaurant chains (in terms of outlet count as on September 30, 2020) as per Technopak Report; received bids of 2,99,01,510 shares against the offered 49,99,609 equity shares, as per the 5:00 pm data available on the bourses.

The portion reserved for retail investors was subscribed 13.13 times. While the Qualified Institutional Buyer category was subscribed 5.11, the Non-Institutional Investor category was subscribed 3.10 times.  The employee category was subscribed 1.02 times.

 

While Prabhudas Lilladher and Nirmal Bang who recommended to subscribe to the issue basis the brand’s robust revenue growth and consistent progress in covers other well established brokerage houses like Kotak Securities, ICICI Direct, Angel Broking, Equirius, Ventura have highlighted positive aspects of the Company like widely recognized restaurant brand, strong emphasis on customer experience, pioneering the ‘Over The Table Barbeque' concept, integrated digital ecosystem for app and reservations, consistent cover growth in recent fiscals, strong presence in the Indian market and value-oriented business culture amongst others.

 

 

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With the reducing COVID cases in the country, progress made in vaccine development, clubbed with government official data indicating that India might have reached the peak of COVID 19 cases, opening up of economy is expected in the near future. It is estimated that by Q2 FY 2022, the Food Services Market is expected to regain almost 99% of the market on a base of 2020 and by Q3 and Q4 it is estimated to be 110% of the base of FY2020.

 

The IPO was a fresh issuance of equity shares of Rs 5 face value, aggregating up to Rs 180 cr and an offer for sale of up to 54,57,470 equity shares of face value of Rs 5 each by the selling shareholders. Equity shares aggregating up to Rs. 2 crore was reserved for eligible employees.

 

As of December 31, 2020, BNHL operated 147 Barbeque Nation restaurants (including opened, temporarily closed and under construction outlets) across 77 cities in India and six international Barbeque Nation restaurants across three countries namely UAE, Oman and Malaysia. The company diversified its offering by acquiring 61.35% stake (on a fully diluted basis) in Red Apple Kitchen Consultancy Private Limited which currently owns and operates Italian restaurants under the brand name “Toscano”, a casual dining Italian restaurant chain operating in Pune, Bengaluru and Chennai, “La Terrace” and “Collage”. It further extended its offerings by introducing UBQ by Barbeque Nation to provide a-la-carte Indian cuisine in the value segment and has also launched “Barbeque-in-a-Box” “Grills in a Box” “Meals in a Box” in June 2020 as delivery offerings.