Barbeque Nation Hospitality makes a tepid listing; opens at a 2.03% discount

• Follow

Shares of Rakesh Jhunjhunwala backed casual dining chain Barbeque Nation Hospitality opened at Rs 489.85 per share on the National Stock Exchange, marking a discount of 2.03% from the IPO price of Rs 500 per share. On the BSE, the restaurant operator opened at Rs 492, a markdown of 1.60%.

The Rs 452.87-crore initial public offer of the company got subscribed 5.98 times on the last day of the offer. The company received 2.99 crore shares as against 49.99 lakh shares on offer, according to the stock exchange data. The qualified institutional buyers (QIBs) category was subscribed 5.11 times. The retail individual investors category was subscribed 13.13 times. The non-institutional investors category was subscribed 3.10 times.

Out of net proceeds from the fresh issue of Rs 180 crore, an amount of Rs 54.62 crore is proposed to be utilized for capital expenditure for expansion and opening of new restaurants by the company; and Rs 75 crore is proposed to utilize for prepayment or repayment of all or a portion of certain outstanding borrowings availed by the company on a consolidated basis; and balance for general corporate purposes. The company proposes to add 20 new Barbeque Nation Restaurants in FY2022 and another 6 Barbeque Nation Restaurants in FY 2023.

Barbeque Nation Hospitality is one of India’s leading casual dining restaurant chains, which owns and operates Barbeque Nation Restaurants and International Barbeque Nation Restaurants. It also owns and operates Toscano Restaurants and UBQ by Barbeque Nation Restaurant.

On a consolidated basis, the company reported a net loss of Rs 100.65 crore and revenue of Rs 201 crore in the eight months ended on 30 November 2020.