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
| 2018 | 2019 | 2020 Mar | 2020 Nov | |
|---|---|---|---|---|
| Revenue from Ops | ₹571.17 Cr | ₹703.46 Cr | ₹787.05 Cr | ₹177.19 Cr |
| Profit before exep.* | ₹144.39 Cr | ₹165.33 Cr | ₹159.55 Cr | ₹9.92 Cr |
| Net Profit | ₹20.10 Cr | ₹(37.02) Cr | ₹(92.67) Cr | ₹(79.77) Cr |
| EPS (Basic) | 7.07 | (13.96) | (33.11) | (28.50) |
| As of March 2020 | EPS (Weighted) | P/E (Floor) | P/E (Cap) |
|---|---|---|---|
| Based on basic EPS | (8.30) | – | – |
Barbeque Nation IPO: Comparison with listed industry peers
| Company | P/E (Cap) |
|---|---|
| Barbeque Nation | – |
| Sector Highest | 140.05* |
| Sector Lowest | 140.05* |
| Sector Average | 140.05* |
(Not really an apples to apples comparison!)
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
Registrar of the Issue
Link Intime India Private Limited
C-101, 1st floor, 247 Park
L. B. S. Marg, Vikhroli West
Mumbai 400 083, Maharashtra, India
Phone:(91 22) 4918 6200
Email: [email protected]
Lead Managers of the Issue
Axis Capital Limited
IIFL Securities Limited
Ambit Capital Private Limited
SBI Capital Markets Limited
Phone: +91-22-4325 2183 / +91-22-4646 4600
Email: [email protected]
