The casual dining restaurant chain, Barbeque Nation raised over 200 crore from its core investors Tuesday, including marquee names such as Nomura and Goldman Sachs, leading up to its IPO today.
The company is issuing over 40 lakh shares at a price of INR 500 and planning to raise about 452.87 crore through the IPO.
Barbeque Nation Hospitality is backed by private equity investor CX Partners and stock market investor Rakesh Jhunjhunwala’s investment firm Alchemy Capital.
The company earns a majority of its revenue from its dine-in business, about 85%, deeming its in-house experience cannot be ‘replicated’ via home delivery.
At a time when a second wave of COVID is sweeping India with cases reaching daily record numbers again, demand could continue to take a hit, as people stay home and order in.
Also, being a casual dining company, the average bill size for the company is also higher than quick service restaurants (QSRs) such as McDonald’s, which is another factor that might affect its fortunes in the current scenario.
Incorporated in October 2006, Barbeque Nation Hospitality owns and operates Barbeque Nation Restaurants, casual dining restaurant chains and International Barbeque Nation Restaurants. It also owns and operates brands such as the Toscano Restaurants and You and Barbeque.
Mr. Jhunjunwala bought it at INR 827, its pre-IPO placement price was fixed at INR 252, about half its IPO ask.
The issue will close on March 26. Should you bite?
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