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Barbeque Nation gets Sebi’s nod for IPO

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Barbeque Nation Hospitality’s IPO comprises fresh issue of shares worth Rs200 crore and an offer for sale of up to 6,179,000 equity shares, according to the draft red herring prospectus

NEW DELHI: Casual dining chain Barbeque Nation Hospitality has received markets regulator Securities and Exchange Board of India’s (Sebi) approval to raise an estimated Rs700 crore through initial public offering (IPO).

The company had filed its draft papers with Sebi in August last year and obtained “observations” from the regulator on 5 January 2018, the latest update with markets watchdog showed. Sebi ‘observations’ are very important for any company to launch public offer.

Barbeque Nation Hospitality’s IPO comprises fresh issue of shares worth Rs200 crore and an offer for sale of up to 6,179,000 equity shares, according to the draft red herring prospectus (DRHP). The offer includes a reservation of up to 1.5 lakh equity shares for the company’s employees.

Proceeds from the issue will be utilised towards setting-up of new Barbeque Nation restaurants in India, repayment of loans, and general corporate purposes. According to merchant banking people in the know, the company is expected to raise Rs700 crore through the IPO.

Earlier, the regulator had kept the processing of the company’s proposed IPO in abeyance “pending regulatory action for past violations”. IIFL Holdings, Edelweiss Financial Services, Jefferies India and SBI Capital Markets are the book running lead managers to the issue.

Barbeque Nation Hospitality, which owns and operates Barbeque Nation restaurants, has steadily grown its owned and operated restaurant network from a single restaurant in 2006-07 to 81 till 30 June 2017.

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