Barbeque Nation IPO opens today: Here are key details for investors to know

The logo of Barbeque Nation. Wikimedia Commons

Barbeque Nation Hospitality opened its initial public offering (IPO) on Wednesday, 24 March. The three-day public offering will close on 26 March while the issue is expected to get listed on 7 April.

According to the data available on the exchanges, the public issue of the company has been subscribed 48 percent on the first day of bidding so far. The retail investors have put in bids 2.61 times followed by 3 percent subscription for non-institutional investors (NII). However, the qualified institutional buyers (QIB) have not put in their bids yet, according to Moneycontrol.

A price band of Rs 498- Rs 500 per share has been fixed for the initial share sale. The IPO comprises a fresh issue of shares worth Rs 180 crore and an offer-for-sale of up to 54,57,470 equity shares.

For eligible employees of the company, equity shares summing up to Rs 2 crore has been reserved. The issue is also expected to raise Rs 453 crore at the upper end of the price band. The company has raised Rs 203 crore from anchor investors on Tuesday, 23 March.

The main objective of the issue is to use the proceedings to make prepayment or repayment of all or a part of the company’s outstanding borrowings availed on a consolidated basis and to meet general corporate purposes.

The promoters of the company include Sayaji Hotels, Sayaji Housekeeping Services, Kayum Dhanani, Raoof Dhanani and Suchitra Dhanani. They are backed by CX Partners and renowned stock market investor Rakesh Jhunjhunwala’s investment firm Alchemy Capital.

60.24 percent shares of the company are with the promoters while CX Partners owns 33.79 percent followed by Alchemy Capital holding 2.05 percent of the company.

The lead managers of the Barbeque Nation IPO are Ambit Private Limited, Axis Capital Limited, IIFL Holdings Limited, SBI Capital Markets Limited. While the registrar of the company is Link Intime India Private Ltd.

With inputs from PTI