India’s Barbeque Nation plans to launch IPO
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Bengaluru-based restaurant chain Barbeque Nation Hospitality aims to raise about Rs700 crore (US$109 million) through an IPO.
Draft documents filed with the Securities and Exchange Board of India say the offer comprises a fresh issue of up to Rs200 crore as well as an offer for sale of up to 6.2 million equity shares by company’s promoters.
The company says it plans to use the funds raised to expand nationally, as well as repay loans.
At the end of June, the company ran 81 Barbeque Nation restaurants in 42 cities in India plus one in Dubai.
Domestic investor CX Partners is likely to sell the bulk of its holding in the company, according to the draft prospectus.
According to Deal Street Asia, the casual-dining chain has acquired the master franchisee rights to India for US burger chain Johnny Rockets.
Questions & Answers
Q.What is the total amount Barbeque Nation Hospitality aims to raise from its IPO?
What is the total amount Barbeque Nation Hospitality aims to raise from its IPO?
The restaurant chain aims to raise approximately Rs700 crore, which is equivalent to US$109 million. This will come from a fresh issue and an offer for sale by promoters.
Q.How does Barbeque Nation Hospitality intend to use the money raised from the IPO?
How does Barbeque Nation Hospitality intend to use the money raised from the IPO?
The company plans to use the funds to expand its operations across India. Also, a portion of the raised capital will be allocated to repay existing company loans.
Q.Which domestic investor is expected to sell a significant part of its shares in Barbeque Nation?
Which domestic investor is expected to sell a significant part of its shares in Barbeque Nation?
Domestic investor CX Partners is anticipated to sell the majority of its holding in Barbeque Nation Hospitality. This information was included in the draft prospectus filed by the company.
Q.How many restaurants did Barbeque Nation operate at the end of June and where are they located?
How many restaurants did Barbeque Nation operate at the end of June and where are they located?
At the end of June, the company operated 81 Barbeque Nation restaurants. These were located in 42 cities across India, with one additional restaurant situated in Dubai.
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