Barbeque Nation Hospitality’s preliminary public supply (IPO) was subscribed 5.98 instances on the ultimate day of the problem, in keeping with subscription knowledge on the exchanges. The restaurant chain’s IPO was subscribed 1.98 instances on the second day of the problem yesterday – March 25. The portion reserved for retail buyers (RIIs) was subscribed 13.13 instances on Friday, March 26 by 5:00 pm. The portion reserved for non-institutional buyers (NIIs) was subscribed 3.10 instances, whereas the portion reserved for certified institutional patrons (QIBs) was subscribed 5.11 instances. (Also Read: Barbeque Nation Hospitality IPO Subscribed 1.98 Times On Second Day Of Issue )
According to knowledge on inventory exchanges, Barbeque Nation Hospitality had fastened the value band of the preliminary public supply at Rs 498 – Rs 500 per share. For the IPO subscription, a complete of 75 per cent of the problem was reserved for the certified institutional patrons, 15 per cent for the non-institutional buyers, and 10 per cent for the retail buyers. The firm has additionally reserved Rs 2 crore price shares for its staff.
Through its public supply, Barbeque Nation goals to boost round Rs 453 crore on the increased finish of the value band. The agency’s IPO market lot measurement is 30 shares, and a retail-individual investor might apply for as much as 13 heaps, particularly 390 shares or Rs 195,000. Barbeque Nation Hospitality IPO subscription window opened on Wednesday, March 24, and closed on March 26, remaining open for buyers for a interval of three days.
Barbeque Nation Hospitality is the fastest-growing restaurant model within the nation and presents a diversified vary of meals for each vegetarians and non-vegetarians. For its ambiance and fashionable dishes, it’s now one of many main informal eating restaurant chains within the nation. The firm was integrated in 2006 and the primary Barbeque Nation restaurant was established in 2008.
According to inventory exchanges, IIFL Securities, Axis Capital, Ambit Capital, in addition to SBI Capital Markets are the ebook working lead managers to the general public concern. Through its IPO, Barbeque Nation intends to utilise the proceeds to open new eating places, repay excellent borrowings, and likewise for normal company functions.
“At the upper finish of the value band, Barbeque Nation IPO is priced at a destructive P/BV and P/E ratio. Considering its post-IPO NAV of Rs. 83.92, the problem is priced at an aggressive P/BV of ~5.95. The firm’s return ratios are worse as in comparison with friends. Further, the COVID-19 pandemic has damage the corporate’s efficiency in 8MY21. Promoter pledge (Rs 24.6 crore), insolvency proceedings and OFS by promoters in IPO (2.03mn shares), are additionally another considerations,” INDmoney mentioned in a report.
”On the constructive entrance, the corporate has good scope of growth given low penetration, the supply enterprise has delivered sturdy progress, and good worth proposition with area of interest positioning within the excessive progress informal eating phase,” the report added.