The Securities Exchange Board of India (SEBI) has given approval for the preferential issue of Barbeque Nation and it is expected that the exchanges may soon give a green signal too for the issue, sources told Zee Business Assistant Editor Brajesh Kumar on Tuesday.   

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The assistant editor in his report mentions that this preferential issue of the hospitality firm was stuck due to PNB Housing issue that went to Securities Appellate Tribunal. 

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Also, due to the Securities and Exchanges Board of India’s condition that the company should get itself valued by an independent registrar valuer according to its articulation of association, Kumar mentions.

This requisite condition of SEBI was already fulfilled by the hospitality company on July 16 and it had tabled the valuation report in front of its Board, the assistant editor points out.

He further added, the valuation report shows that the preferential allotment, when compared with valuation, is on a higher side, and eventually, the biggest hurdle for the issue was removed.

Kumar states the restrictions from exchanges on the company regarding the preferential issue will go away and moreover, the company has already received approval from their shareholders through an extraordinary general meeting (EGM) voting process.

The Rs 100-crore preferential issue allotment will help the company, which was majorly impacted by the covid lockdown, to get rid of the cash crunch problem, adds the assistant editor.

Barbeque Nation shares hit a new 52-week high to Rs 1270 per share, after surging near 4.5 per cent on the BSE intraday trade, perhaps immediately after the Zee Business exclusive newsbreak.

The shares have eventually given up their gain and is trading near 1 per cent down to Rs 1209.55 per share on the BSE, as compared to a 0.03 per cent rise in the S&P BSE Sensex as around 10:27 am.