Barbeque Nation IPO Details and Review

Barbeque Nation IPO: Key Details

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Company Information

Barbeque Nation Hospitality Limited (BNHL), incorporated in 2008, is one of India’s leading casual dining restaurant chains (in terms of outlet count as of September 30, 2020) and International Barbeque Nation Restaurants. It also owns and operates Toscano Restaurants and UBQ by Barbeque Nation Restaurant.

They have steadily grown and operated Barbeque Nation Restaurant network from a single restaurant in 2008 to 147 Barbeque Nation Restaurants across 77 cities in India and six International Barbeque Nation Restaurants in three countries outside India as of Dec 31, 2020.

They own 61.35% of the equity share capital of Red Apple, which owns and operates nine restaurants under the brand name, “Toscano”, a casual dining Italian restaurant chain and operates one restaurant each under the brand names “La Terrace” and “Collage” respectively. In Nov 2018, they launched UBQ by Barbeque Nation Restaurant to provide a la carte Indian cuisine in the value segment.

Competitive Strengths

• Barbeque Nation is one of India’s fastest-growing and widely recognised restaurant brands in the rapidly growing CDR market
• Steady growth in covers and consistent APC with a relatively high proportion of total revenues from weekday sales and lunch covers
• Attractive offerings based on constant menu innovation and customer focus
• Strong business processes and back-end systems leading to efficient operations
• Experienced staff and value-oriented business culture
• Proven track record of revenue growth

Company Strategy

• Increase same store sales growth, revenue per store and profitability as the vintage of the Barbeque Nation Restaurants increases
• Continue expansion in Indian cities
• Preserve customer and team-focused culture and values
• Expansion through owned & franchise formats in select international markets
• Continue evaluating strategic brand acquisitions

Proceeds from Barbeque Nation IPO will be used to:

• Prepayment or repayment of all or a portion of certain outstanding borrowings availed by the Company on a consolidated basis; and
• General corporate purposes

Barbeque Nation IPO: Financials

Barbeque Nation IPO: Comparison with listed industry peers

Barbeque Nation IPO Dashboard

Issue Details

Type	Value
Issue Size	₹452.87 Cr
Fresh Issue	₹180.00 Cr
Offer for Sale	₹272.87 Cr
Face Value	₹5/- per Equity Share
IPO Price	₹498 – ₹500
Lot Size	30 shares
Lots	Min 1 – Max 13

Key Dates

Date Type	Date
Bid Open	24/03/2021
Bid Close	26/03/2021
Allotment Finalization	1/04/2021
Initiation of Refunds	5/04/2021
Credit of Shares	6/04/2021
Listing Date	7/04/2021

Lot Size and Price

Lots	Shares	Amount
1	30	₹15,000
13	390	₹1,95,000

Promoter Holding

Holding	Percentage
Pre-Issue	60.21%
Post-Issue	[●]%

Barbeque Nation IPO: Investor Quota and Shares Offered

Investor Type	Quota	Shares on Offer
QIB	75%	27,05,242*
NII	15%	13,52,620
RII (Retail)	10%	9,01,747
Employees	–	40,000
Total	100%	49,99,609

Barbeque Nation IPO: Risks

• Deterioration in the performance of, or relationships with, third-party delivery aggregators, may adversely affect the business
• If the company is unable to implement the growth strategy successfully including in relation to selecting cities and locations for new restaurants the business may be adversely affected.
• The Company has been issued a notice from the National Anti-Profiteering Authority under the Central Goods and Services Tax Act, 2017.
• SHL, Kayum Dhanani, Raoof Dhanani and Suchitra Dhanani, who are Promoters, and certain Promoter Group members were involved in SEBI proceedings in relation to certain non-compliances under securities-related laws.
• One of the non-executive and independent directors, Mr. Abhay Chaudhari, has been named in the CIBIL suit filed accounts list.

For complete internal and external risk factors, you can refer the RHP and DRHP of the company.

Barbeque Nation IPO: Registrar and Lead Managers