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    Barbeque Nation Hospitality IPO opens today: Key things to know before investing

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    Barbeque Nation Hospitality IPO opens today: Key things to know before investing

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    The initial public offering (IPO) of Barbeque Nation Hospitality, a casual dining restaurant chain operator, opens for subscription today.

    The initial public offering (IPO) of Barbeque Nation Hospitality, a casual dining restaurant chain operator, opens for subscription today. This will be the 17th public offer in the calendar year 2021 so far. The issue will close on March 26.
    The company owns and operates Barbeque Nation Restaurants, one of India’s leading casual dining restaurant chains and International Barbeque Nation Restaurants.
    IIFL Securities, Axis Capital, Ambit Capital and SBI Capital Markets are the book-running lead managers to the issue.
    Here are the key things to know about the Barbeque Nation Hospitality IPO:
    • The IPO comprises a fresh issue of equity shares aggregating up to Rs 180 crore and an offer for sale of up to 5,457,470 equity shares by existing selling shareholders.
    • The price band for the offer has been fixed at Rs 498-Rs 500 per equity share.
    • The company aims to raise Rs 451.78 crore-Rs 452.87 crore at the given price band.
    • The company has reserved shares worth Rs 2 crore for its employees.
    • 75 percent of the total book size is reserved for qualified institutional buyers, 15 percent for non-institutional investors and 10 percent for retail investors.
    • Investors can bid for a minimum of 30 equity shares and in multiples of 30, thereafter.
    • Promoter and promoter group shareholding after the issue will be reduced to 37.79 percent from 47.80 percent at present.
    • The company proposes to utilise the net proceeds from the issue for expansion and opening of new restaurants, prepayment or repayment of all or a portion of certain outstanding borrowings and general corporate purposes.
    • Barbeque Nation has already raised more than Rs 202.89 crore from anchor investors on March 23, ahead of the IPO.
    • The shares are expected to list on April 7 on BSE and NSE.
    • As of December 31, 2020, the company has 164 restaurants owned and operated by them.
      Barbeque Nation Hospitality pioneered the format of ‘over the table barbeque’ concept in Indian restaurants, according to the Technopak Report.
      Barbeque-Nation Hospitality has reported losses in every financial year since FY18. However, the company’s revenue has been increasing in the same periods.
      But at the operating level, the performance remained better with EBITDA (earnings before interest, tax, depreciation and amortisation) at Rs 140.37 crore, Rs 149.39 crore, Rs 168 crore and Rs 12.59 crore in FY18, FY19, FY20 and in eight months period ended November 2020.
      Source: Yes Securities
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