The funds will be used for expansion, modernization and improving infrastructure.
Pecos Hotels and Pubs, which runs the popular Pecos chain in Bengaluru, is coming out with an initial public offer (IPO), the company informed BSE earlier this week. The funds, said the company’s note to BSE, will be used to add another pub in the city.
Apart from expansion, the money will be used for modernization, infrastructure and putting proper processes in place, the company’s promoters said. Its chairman and managing director Collin Richard Timms said that the money will be used to improve the top line and bottom line of the company.
The IPO will have 459,000 equity shares of face value of INR 10 each for cash at a fixed price of INR 50 per equity share, the company said in a filing to BSE. The issue will open on July 23 and close on July 28.
Pecos, which has four branches in the city, started its first pub on Rest House Road in 1989. With its religious following of patrons, it has stood the test of time despite the mushrooming pub culture as well as micro breweries in the city in recent years. The chain’s expansion comes at a time when bars and restaurants across top metros are looking at scaling operations.
Earlier this month, Azzure Hospitality, which owns the Mamagoto chain of Asian restaurants, raised USD 10 million from Goldman Sachs.
Timms said that the promoters may eventually consider expanding to other cities, but for at least the next two to three years, it would consider scaling up operations in Bengaluru. For the financial year ending March 31 2014, Pecos registered a net profit of INR 1.2 lakh on sales of INR 2.92 crore in the same period.
The Indian food and beverage industry is projected to grow to INR 408,040 crore by 2018 at a compound annual growth rate of 11%, according to a survey commissioned by the National Restaurant Association of India.
