Barbeque Nation IPO closes for subscription today, Retail Investors portion subscribed nearly 10 times

Barbeque Nation's initial public offering (IPO) was subscribed 1.98 times on the second day of subscription, i.e. on March 25, 2021. The retail portion of the offer was subscribed 9.66 times, while QIB and NII were subscribed 0.37 times and 0.10 times, respectively. Today was the last day for the subscription of the public offer. The company has fixed the price band for its issue at Rs 498-500 per share. Barbeque Nation plans to raise around Rs 453 cr at the upper end of the price band. The Issue closes today.

Zee Business Managing Editor Anil Singhvi had said that Investors should AVOID subscribing for listing gains. Long term investors can invest in this IPO if they have an investment horizon of 3 years.

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Barbeque Nation owns and operates Barbeque Nation, one of India’s leading casual dining restaurant chains (in terms of number of outlets as on September 30, 2020) according to the Technopak Report and International Barbeque Nation Restaurants. The company has steadily grown, owned and operated the network of Barbeque Nation restaurants, starting from a single restaurant in 2008 to 147 restaurants across 77 cities in India and six International Barbeque Nation Restaurants in three countries outside India as on December 31, 2020. Around 71 restaurants have been added since April2017 (24 restaurants have been added since April 2019).

Barbeque Nation also owns and operates Toscano Restaurants and UBQ by Barbeque Nation restaurants. Toscano is an Italian cuisine brand with 11 restaurants across three cities in India (and contributes 6% of revenues), while UBQ by Barbeque Nation(launched in November 2018) predominantly caters to the delivery segment.

As compared to other fixed price dining options, Barbeque Nation Restaurants offers competitive attractions such as a wide range of vegetarian and non-vegetarian appetisers and main courses, a popular dessert menu, a pleasant and casual dining environment and prompt services thereby making it a popular destination for celebrations. Consistent restaurant addition, higher churn out during weekdays/weekends and improved back-end efficiencies are some key growth drivers for the company. Revenue and operating profit grew at CAGR of 20.2% and 9.8% over FY2018-20. Its consolidated operating margins (OPM; including impact of Ind-AS116) stood at 19.4% in FY2020 (OPM of restaurants with more than two years of operations stood at 20%).