Barbeque Nation Hospitality’s Rs 452.87 crore initial public offer (IPO) was oversubscribed on the first day of the issue. Barbeque Nation Hospitality’s share sale via IPO was subscribed 1.33 times till 5:00 pm on the first day of the issue, data from the National Stock Exchange showed. Barbeque Nation Hospitality received a total of 66.46 lakh bids for 49.99 lakh shares on the offer.A total of 42.87 lakh bids were received at the cut-off price, the data showed.
Barbeque Nation Hospitality shares were in heavy demand among the retail investors as portion reserved for them was subscribed 3.48 times while the portion reserved for Qualified Institutional Buyers (QIBs) and Non Institutional Investors saw tepid response by the end of the first day of the bidding.
Barbeque Nation Hospitality has fixed the price band of the offer at Rs 498 – Rs 500 per share.
The IPO comprises of a fresh issue of Rs 180 crore and an offer for sale of up to 54,57,470 equity shares by existing selling shareholders. Investors can bid for a minimum one lot of 30 equity shares and in multiples of 30 thereafter, up to 13 lots.
A total of 75 per cent of the issue is reserved for qualified institutional buyers, 10 per cent for retail investors and the remaining 15 per cent for non-institutional investors. The company has reserved Rs 2 crore worth shares for its employees.
The company will utilise the IPO proceeds to open new restaurants, repay outstanding borrowings and for general corporate purposes.
Barbeque Nation Hospitality was incorporated in 2006 and the first Barbeque Nation restaurant was established in 2008.
IIFL Securities, Axis Capital, Ambit Capital and SBI Capital Markets are the book running lead managers to the public issue.