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News

Barbeque-Nation files IPO papers to raise Rs 700 cr

on

According to market sources, the IPO Issue size is approximately ₹700 crore. The Issue comprises a fresh issue of shares of ₹200 million and an offer for sale of up to 61,79,000 equity shares from selling shareholders that comprise promoters and exiting private equity investor CX Partners. The promoters are Sayaji Hotels, Sayaji Housekeeping Services, Kayum Dhanani, Raoof Dhanani and Suchitra Dhanani. IIFL Holdings, Edelweiss Financial Services, Jefferies India and SBI Capital Markets are the Book Running Lead Managers.

Expansion

The company has planned a capital outlay of ₹90 crore to open 50 new restaurants over the next three years. Popular for introducing the concept of live grills on tables in 2006, when it opened its first restaurant in Mumbai, Barbeque Nation has expanded its footprint over the past 10 years with presence in Delhi-NCR, Uttar Pradesh, Chandigarh, Rajasthan, West Bengal, Maharashtra, Karnataka, Andhra Pradesh and Tamil Nadu. “We opened our 25th restaurant in Chennai in FY 2012, 50th in Mysuru in 2015, and today have 80 restaurants including one in Dubai, which we opened late last year,” said Kayum Dhanani, Managing Director, Barbeque-Nation Hospitality. “By March 2018, we will have a footprint of 96 restaurants across the country.” The new restaurants will come up in metros where the company already have a presence and in Tier II cities, at a capex of ₹1.8-2 crore each.

The company is also planning to expand its presence in Dubai with three more restaurants are coming up by March 2018. “Barbeque is a global cuisine, loved by people all over the world. Nearly 45 per cent of the population in Dubai is Indian; so our food is very well accepted there. To cater to the local palate, we offer a variety of local marinade options for our grills” said Dhanani. The company’s revenue grew 25 per cent year-on-year to touch ₹500 crore in FY 2017.

‘Value for money’

Barbeque Nation spawned many me-too restaurants that have opened and shut shop in quick succession over the past few years. Asked how the restaurant chain continues to thrive, Dhanani said: “We started with a simple vision of providing a satisfying dining experience at fixed affordable rates for the value-conscious Indian customer. And we continue to offer unlimited barbeque starters (five veg + five non-veg), a main course veg/non-veg buffet along with a variety of soups, salads, desserts and a drink, which is tremendous value for money for customers.”

To keep customer interest alive, the restaurant chain recently introduced Kulfi Nation counters offering eight basic kulfis (with the option of having it in 800 different combinations of dips, sauces and toppings), and Live Counters where chefs cook food based on customer preferences.

Source: The Hindu Business Line

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