Barbeque Nation Hospitality Limited IPO
Originally incorporated in 2006 as Sanchi Hotels Private Limited(SHL), Barbeque Nation Hospitality is one of the leading casual dining restaurant chains in India. The name of the company was changed from SHL to Barbeque-Nation Hospitality Private Limited in the year 2008. The company opened its first store as Barbeque Nation in 2008 and acquired 5 barbeque restaurants owned by its promoter SHL in 2012. It has grown from a single restaurant in 2008 to 145 restaurants in 2019. As of 30th November 2019, the company operated 138 barbeque restaurants in 73 cities in India and 7 international barbeques in 3 foreign countries. The company believes through its offerings including the nature and quality of the food, ambience, and service in their restaurants, it is being able to create a one of its kind experience for its customers.
In November 2018, Barbeque Nation launched UBQ to provide La carte Indian cuisine which at present predominantly caters to the delivery segment. As of 30th November 2019, it was providing delivery in 71 cities under the UBQ from their existing kitchen infrastructure. The company has acquired a 61.35% stake in Red Apple which operates 10 Italian restaurants under the brand “Toscano”, a casual dining chain in two cities namely Bengaluru & Chennai, and operates a single restaurant by the name “La Terrace”.
Barbeque Nation Restaurant’s in-dining covers have grown at a CAGR of 14.29% from 68.6 lakhs in FY 2017 to 89.6 lakhs in FY 2019. As of 30th November 2019, 138 Barbeque nations were operated in India, out of which 12 were opened between 31st March 2019 to 30th November 2019, and 59 were opened since 1st April 2017.
The promoters of the company are Sayaji Hotels Limited, Sayaji Housekeeping Services Limited, Mr. Kayum Dhanani, Mr. Raoof Dhanani, and Mrs. Suchitra Dhanani.
Strengths of the company
- Barbeque Nation is widely recognized and one of India’s fastest-growing restaurant brands in the CDR market.
- Has a steady growth in covers and APC which leads to growth in average bill size.
- The company has an attractive offering that is based on constant menu innovations & customer focus.
- It has strong business processes & backend systems that help to conduct operations efficiently.
- The company has an experienced staff, and value-oriented business that is led by some of their promoters, and senior management team.
- The company has a strong track record of financial position and revenue growth.
Purpose of the IPO
- To make repayments or prepayment of all or some portion of its borrowings
- To meet the general corporate purposes.
Financial Performance of the company
| For the six-month period ended 30th September 2019 | FY 2019 | FY 2018 | FY 2017 | |
| Total Revenue | 424.25 | 742.54 | 590.44 | 498.58 |
| Total Expenses | 335.32 | 593.15 | 450.08 | 376.84 |
| Profit After Tax | -9.36 | -38.33 | -5.80 | 3.95 |
| Total Assets | 859.73 | 819.08 | 723.16 | 528.82 |
*All the values are in crores and as per DRHP.
Valuation of the Company
| For the six-month period ended 30th September 2019 | FY 2019 | FY 2018 | FY 2017 | |
| Basic Earnings per Share (EPS) | -3.35 | -14.45 | -2.51 | 1.58 |
| Diluted Earnings per Share (EPS) | -3.35 | -14.45 | -2.51 | 1.58 |
| Return on Net Worth (%) | -7.99% | -16.11% | 4.68% | 7.64% |
| Net Assets Value per Equity share | 41.86 | 47.04 | 52.53 | 39.23 |
*As per DRHP
Barbeque Nation Hospitality Limited IPO DRHP
IPO details
| Face Value | ₹5 per equity share |
| Market Lot | 30 Shares |
| Minimum Order Quantity | 30 Shares |
| Price Band | ₹498 - ₹500 per equity share |
| Issue type | Book Built Issue IPO |
| Issue Size | ₹452.87 Crores |
| Fresh Issue | ₹180 Crores |
| Offer for Sale | ₹272.87 Crores |
| Listing | NSE, BSE |
Important IPO dates
| Open Date | 24th March 2021 |
| Close Date | 26th March 2021 |
| Basis of Allotment Date | 01st April 2021 |
| Initiation of Refunds | 05th April 2021 |
| The credit of shares to Demat Account | 06th April 2021 |
| Listing Date | 07th April 2021 |
Allocation Quota
| Category | Portion |
| Qualified Institutional Buyers (QIBs) | Not less than 75% |
| Non- Institutional Buyers (NIIs) | Not more than 15% |
| Retail Investors | Not more than 10% |
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