Barbeque Nation share springs a surprise, zooms 20% post weak listing

Share of Barbeque Nation Hospitality surged 20% after listing at a discount of 2% today. Barbeque Nation share listed at Rs 489.85 on NSE, a 2.03 per cent discount against issue price of Rs 500. The price band of the IPO was fixed at Rs 498-500 per share. Later, the stock surged 20% to Rs 587.80 on NSE.  Total 53.14 lakh shares of the firm changed hands on NSE.

On BSE, the stock made its debut at Rs 492, down 1.6 per cent.  It surged 20% to Rs 590.94 at 10: 42 am.  On BSE, 8.24 lakh shares changed hands in early trade. Market cap of Barbeque Nation surged to Rs 2,216 crore on BSE. On NSE, market cap of the firm stood at Rs 2,206 crore.

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The firm backed by ace investor Rakesh Jhunjhunwala raised Rs 453 crore from its initial public offering (IPO)  held from March 24 to March 26.  Allotment of shares was done on April 1, 2021. The allotment of shares for Barbeque Nation Hospitality was done on April 1.

The IPO was subscribed 5.98 times on its last day on March 26. The issue received bids for 2.99 crore equity shares against the offer size of 49.99 lakh equity shares. Retail investors submitted bids 13.13 times the reserved portion, while that of non-institutional investors was subscribed 3.10 times.

Shares of the firm could be bought in a minimum lot size of 30.

To bid for one lot in the IPO, one had to spend Rs 15,000. A retail  investor could apply for up to 13 lots  or 390 shares by spending Rs 195,000.

Allotment of shares in the IPO ws done on April 1, 2021. The IPO comprised fresh issue of shares worth Rs 180 crore and an offer-for-sale of up to 54,57,470 equity shares aggregating up to Rs 272.87 crore. Equity shares aggregating up to Rs 2 crore were reserved for eligible employees.

The company had raised Rs 150 crore through a pre-IPO placement from Xponentia Capital and Jubilant Foodworks. Proceeds from the issue will be utilised to fund the company’s capital expenditure for expansion and opening of new restaurants besides, prepayment or repayment of certain borrowings and expenses related to general corporate purposes.

Barbeque Nation Hospitality is backed by private equity investor CX Partners and renowned stock market investor Rakesh Jhunjhunwala’s investment firm Alchemy Capital. The company’s  promoters are Sayaji Hotels Limited, Sayaji Housekeeping Services, Kayum Dhanani, Raoof Dhanani, and Suchitra Dhanani.

Link Intime India Private Ltd was the registrar for the IPO and IIFL Securities, Axis Capital, Ambit Capital and SBI Capital Markets were merchant bankers to the issue.

Barbeque Nation Hospitality had filed preliminary papers for the IPO in February last year. It received Sebi’s approval in July 2020 to float the IPO. Barbeque Nation Hospitality, owns and operates Barbeque Nation Restaurants.  It also operates Toscano restaurants and UBQ by Barbeque Nation Restaurant.

Edited by Aseem Thapliyal

Barbeque Nation IPO subscribed six times on final day; retail portion booked 13 times

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