Barbeque Nation Hospitality’s initial public offer (IPO) was subscribed 5.98 times on the final day of the issue, according to subscription data on the exchanges. The restaurant chain’s IPO was subscribed 1.98 times on the second day of the issue yesterday – March 25. The portion reserved for retail investors (RIIs) was subscribed 13.13 times on Friday, March 26 by 5:00 pm. The portion reserved for non-institutional investors (NIIs) was subscribed 3.10 times, while the portion reserved for qualified institutional buyers (QIBs) was subscribed 5.11 times. (Also Read: Barbeque Nation Hospitality IPO Subscribed 1.98 Times On Second Day Of Issue )
According to data on stock exchanges, Barbeque Nation Hospitality had fixed the price band of the initial public offer at Rs 498 – Rs 500 per share. For the IPO subscription, a total of 75 per cent of the issue was reserved for the qualified institutional buyers, 15 per cent for the non-institutional investors, and 10 per cent for the retail investors. The company has also reserved Rs 2 crore worth shares for its employees.
Through its public offer, Barbeque Nation aims to raise around Rs 453 crore at the higher end of the price band. The firm’s IPO market lot size is 30 shares, and a retail-individual investor could apply for up to 13 lots, specifically 390 shares or Rs 195,000. Barbeque Nation Hospitality IPO subscription window opened on Wednesday, March 24, and closed on March 26, remaining open for investors for a period of three days.
Barbeque Nation Hospitality is the fastest-growing restaurant brand in the country and offers a diversified range of meals for both vegetarians and non-vegetarians. For its ambiance and modern dishes, it is now one of the leading casual dining restaurant chains in the country. The company was incorporated in 2006 and the first Barbeque Nation restaurant was established in 2008.
According to stock exchanges, IIFL Securities, Axis Capital, Ambit Capital, as well as SBI Capital Markets are the book running lead managers to the public issue. Through its IPO, Barbeque Nation intends to utilise the proceeds to open new restaurants, repay outstanding borrowings, and also for general corporate purposes.
“At the higher end of the price band, Barbeque Nation IPO is priced at a negative P/BV and P/E ratio. Considering its post-IPO NAV of Rs. 83.92, the issue is priced at an aggressive P/BV of ~5.95. The company’s return ratios are worse as compared to peers. Further, the COVID-19 pandemic has hurt the company’s performance in 8MY21. Promoter pledge (Rs 24.6 crore), insolvency proceedings and OFS by promoters in IPO (2.03mn shares), are also some other concerns,” INDmoney said in a report.
”On the positive front, the company has good scope of expansion given low penetration, the delivery business has delivered robust growth, and good value proposition with niche positioning in the high growth casual dining segment,” the report added.