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Despite a sluggish market & sub-standard financial bottom lines, the Indian F&B industry looks shining with opportunities giving investors all the more reasons to hedge their bets in ventures that look promising. In such latest growth story, Barbeque Nation becomes the first of its kind venture for the year 2018 to have gotten [SEBI] Securities and Exchange Board of India’s nod for an IPO. The company engaged IIFL Holdings, Edelweiss Financial Services, Jefferies India and SBI Capital Markets as their financial managers & advisors to manage this business transition. The casual dining chain drafted & filed for an IPO in the month of August last year and obtained observations from the regulator on 5 January 2018.
According to the Draft Red Herring Prospectus [DRHP], the company – Barbeque Nation Hospitality’s IPO is approved for raising close to Rs. 700 crore & an issuance of shares worth Rs. 200 crore for an offer to sell around 6,179,000 equity shares. This includes a reservation of 1.5 lakh equity shares for the company’s employees as well. They have had a fairly stable rise with 81 outlets currently operating across the country since their inaugural opening back in 2006-07. However, their IPO draft petition was withhold despite their track record on the grounds of “pending regulatory action for past violations”.
Following a similar IPO streak of 41 companies that led the newly minted public entities past year, 2018 too – looks favorable with Hindustan Aeronautics Limited [HAL], IRCTC, Reliance General Insurance Company & HG Infra Engineering among the number of companies already in-line towards a same transformation. The publicly raised funds by Barbeque Nation Hospitality will then be utilized under various heads such as, regular corporate expenditures, brand’s footprint expansion by setting up new Barbeque Nation restaurants & outlets nation-wide, loan repayments etc.
Image Credit: Franchise India
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