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Casual dining chain Barbeque Nation Hospitality is set to launch its initial public offerings (IPO) on March 24, Wednesday. The company is backed by private equity investor CX Partners and renowned stock market investor Rakesh Jhunjhunwala’s investment firm Alchemy Capital.
The initial public offer comprises a fresh issue of shares worth Rs 180 crore and an offer-for-sale of up to 54,57,470 equity shares, according to the report. Barbeque Nation Hospitality has already raised Rs 150 crore through a pre-IPO placement from Xponentia Capital and Jubilant Foodworks, they added.
Proceeds of the issue will be utilised to fund the company’s capital expenditure for expansion, besides prepayment or repayment of certain borrowings and expenses related to general corporate purposes.
The company is promoted by Sayaji Hotels, Sayaji Housekeeping Services, Kayum Dhanani, Raoof Dhanani and Suchitra Dhanani. It is backed by private equity firm CX Partners, which made its first investment in 2013 and again in 2015.
The promoters hold 60.24% stake, CX Partners owns 33.79% and Jhunjhunwala’s investment firm Alchemy Capital holds 2.05% in the company.
The total operating revenue of the company in FY20 was Rs 850.8 crore and the CAGR from FY17 to FY20 was at 19.5%.
The company, which filed preliminary papers in February last year, received Sebi’s approval in July 2020 to launch the IPO.
Barbeque Nation Hospitality owns and operates Barbeque Nation Restaurants, currently operating at 138 outlets across India and 7 outlets in the UAE, Oman and Malaysia.
Recently concluded Nazara Technologies, which is also backed by Jhunjhunwala, recently got an overwhelming response from investors. The issue got subscribed 175 times on the last day of the bidding process on Friday.