Barbeque Nation IPO Subscription Status: FINAL
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.
| Investor Category | Quota | Subscription |
|---|---|---|
| Institutional (QIB) | 75% | 5.11x |
| Non-Insti. (HNI) | 15% | 3.10x |
| Retail (RII) | 10% | 13.13x |
| Employees | – | 1.02x |
| Total Subscription | 100% | 5.98x |
Barbeque Nation IPO Subscription: End of Day Update
| Day | Day 1 | Day 2 | Day 3 |
|---|---|---|---|
| QIB | 0.37x | 0.37x | 5.11x |
| HNI | 0.07x | 0.10x | 3.10x |
| Retail | 6.14x | 9.66x | 13.13x |
| Employees | 0.41x | 0.70x | 1.02x |
| Total | 1.33x | 1.98x | 5.98x |
Barbeque Nation IPO Subscription: Analyst Recommendations
CHOICE BROKING – AVOID [ Report ]
“At a higher price band of Rs. 500, the company is demanding an EV/Sales multiple of 3x (to its FY20 sales of Rs. 8,470mn), which is a discount to the peer average of 3.9x. Comparison with QSR chains is unjustifiable because of different business model and a relatively higher proportion of delivery business. In contrast, BNHL’s delivery business contributed 15% to the business in Nov. 2020 (mainly due to pandemic induced lockdown), which is not sustainable in the future”
Prabhudas Lilladher – CAUTION
“We believe the company is valued cheaply at 1.4 times FY23 EV/sales. However, the stock at 46 times FY23 EPS offers limited upside. Although we expect reasonable listing gains given the euphoria in the IPO market, the operational delivery needs to improve significantly for any serious re-rating in the long term”
Barbeque Nation IPO Subscription: Key IPO Details
| 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) |
|---|---|
| Suryoday SFB | – |
| Sector Highest | 140.05* |
| Sector Lowest | 140.05* |
| Sector Average | 140.05* |
(Not really an apples to apples comparison!)
Barbeque Nation IPO Subscription – FAQs
1. How to apply for Barbeque Nation IPO in Retail Category?
A: An investor in retail category may either apply through the UPI process via DEMAT account or the ASBA process via bank account
2. How to apply for Barbeque Nation IPO in HNI Category?
A: An investor can apply in HNI category only through the ASBA process via bank account
3. Where can I find the Red Herring Prospects (RHP) details?
A: You can visit the NSE or SEBI website for these details. Alternately you can click here: RHP and DRHP
