new Delhi. Casual dining chain Barbeque Nation Hospitality has got permission from market regulator Sebi to launch an initial public offering (IPO) to raise up to Rs 1000-1200 crore from the capital market. Under the IPO, the company will issue fresh shares worth Rs 275 crore and sell 98,22,947 equity shares through the offer for sale. The company may also consider a pre-IPO placement to raise Rs 150 crore.
Barbecue Nation Hospitality submitted its draft documents to SEBI in February. SEBI has given its approval on July 07. To bring public issues like IPOs, FPOs and Right Issues, it is mandatory for any company to get approval before SEBI.
The funds raised from the IPO will be used to repay the outstanding debt of Rs 205 crore in full or in part and for general corporate purposes. The promoters of the company include Sayaji Hotels, Sayaji Housekeeping Services, Qayyum Dhanani, Rauf Dhanani and Suchitra Dhanani. Private equity firm CX Partners has invested in it. It made the first investment in 2013 and the second in 2015.
The promoters hold a 60.24 percent stake. Caix Partners holds 33.79 percent stake. Alchemy Capital, an investment firm of well-known investor Rakesh Jhunjhunwala, holds a 2.05 percent stake in the company. According to market sources, the size of the company's IPO will be between 1000 and 1200 crores.
The issue is being managed by IIFL Securities, Axis Capital, Ambit Capital and SBI Capital Markets. Earlier in 2017, the company had submitted documents with SEBI for an IPO worth Rs 700 crore. It was approved by Sebi in January 2018. However, the company did not offer the IPO due to adverse market conditions.
Barbecue Nation Hospitality owns and operates the Barbecue Nation Restaurant. It currently has 138 outlets in India. The company has 7 outlets in the UAE, Oman and Malaysia.
This post was published on July 14, 2020 1:01 pm
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