Barbeque Nation IPO: All you need to know

Up to 50 per cent of the offer will be available for allocation to qualified institutional buyers (QIBs).

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Barbeque Nation Hospitality on February 18 said it re-filed fresh draft red herring prospectus (DRHP) with Sebi for its initial public offer (IPO).
Bengaluru-based Barbeque Nation Hospitality (BHNL) has filed IPO papers with SEBI for the second time. Backed by private equity investor CX Partners and ace investor Rakesh Jhunjhunwala's investment firm Alchemy Capital, the IPO would comprise a fresh issue of shares as well as offer for sale.

Up to 50 per cent of the offer will be available for allocation to qualified institutional buyers (QIBs). In addition, 15 per cent of the issue will be reserved for non-institutional bidders and 35 per cent of the offer will be available for the allocation to retail individual bidders.

Here are the key details of the IPO:

  1. When did Barbeque Nation Hospitality file papers with SEBI?
    Barbeque Nation Hospitality on February 18 said it re-filed fresh draft red herring prospectus (DRHP) with Sebi for its initial public offer (IPO). In 2017, the company had filed for the issue, but the process took long due to “pending regulatory action for past violations." When the company finally got the approval for the issue in January 2018, the market conditions turned averse and it could not launch the issue within the one year period.
  2. What is the issue size of Barbeque Nation Hospitality?
    According to market sources, the issue size will be approximately Rs 1,000-1,200 crore. The issue will comprise a fresh issue of shares of Rs 275 crore and an offer for sale of up to 98,22,947 equity shares. The company may also consider doing a pre-IPO placement not exceeding Rs 150 crore, the company said in its DRHP.
  3. Is Rakesh Jhunjhunwala a shareholder in Barbeque Nation Hospitality?
    Rakesh Jhunjhunwala's investment firm Alchemy Capital holds 2.05 per cent stake in the company. Private equity investor CX Partners owns 33.79 per cent. The promoters of Barbeque Nation Hospitality are Sayaji Hotels, Sayaji Housekeeping Services, Kayum Dhanani, Raoof Dhanani and Suchitra Dhanani. They together hold 60.24 per cent stake in the firm.
  4. What business is Barbeque Nation Hospitality engaged in?
    Barbeque Nation Hospitality owns and operates Barbeque Nation Restaurants. Since its earlier filing in August 2017, the restaurant chain has opened up 59 new outlets and is operating 138 outlets across 78 cities spread across 24 Indian states. It has 7 outlets in the UAE, Oman and Malaysia. The company claims to be India’s largest player in the organised dining space.
  5. What will Barbeque Nation Hospitality do with IPO proceeds?
    The proceeds of the issue will be utilised to repay an outstanding borrowing of Rs 205 crore in part or full and for general corporate purposes. Meanwhile, each of the selling shareholders will be entitled to their respective portion of the proceeds of the offer for sale, after deducting their portion of the offer related expenses and relevant taxes thereon.
  6. What are recent acquisitions by Barbeque Nation Hospitality?
    Recently, the company acquired 61.35 per cent stake in Red Apple Kitchen which owns a well-established brand, Toscano, a casual dining Italian restaurant chain which currently has 10 outlets operating across Bengaluru and Chennai. Additionally, through its existing kitchen infrastructure, it launched UBQ in November 2018 to provide a la carte Indian cuisine in the value segment which is currently being availed by delivery across 71 cities.
  7. Who are the lead Managers in Barbeque Nation Hospitality IPO?
    IIFL Securities, Axis Capital, Ambit Capital, and SBI Capital Markets are the Book Running Lead Managers to the issue.
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