There are some interesting IPOs scheduled to be launched in 2021. One such IPO is the Barbeque Nation Hospitality Limited IPO that is being launched on March 24, 2021. Here is all you need to know about the issue.
|IPO Date||March 24, 2021 to March 26, 2021|
|Issue Type||Book Built Issue IPO|
|Issue Size||Equity Shares of Rs.5 totaling up to Rs.452.87 Crore|
|Fresh Issue||Equity Shares of Rs.5 totaling up to Rs.180.00 Crore|
|Offer for Sale||Equity Shares of Rs.5 totaling up to Rs.272.87 Crore|
|Face Value||Rs.5 per equity share|
|IPO Price||Rs.498 to Rs.500 per equity share|
|Market Lot||30 shares|
|Min Order Quantity||30 shares|
|Listing At||BSE, NSE|
|Bid/Offer Launch date||March 24, 2021|
|Bid/Offer Last date||March 26, 2021|
|Basis of Allotment finalization date||April 01, 2021|
|Initiation of Refunds||April 05, 2021|
|Credit of Shares to Demat Acct||April 06, 2021|
|IPO Shares Listing Date||April 07, 2021|
Barbeque Nation Hospitality Limited owns and operates Barbeque Nation Restaurants, one of India’s leading casual dining restaurant chains, and International Barbeque Nation Restaurants. It also owns and operates Toscano Restaurants and UBQ by Barbeque Nation Restaurant. The company strives to offer a one-of-a-kind customer experience via the nature and quality of its food offerings and the ambience and service of its restaurants.
Barbeque Nation is the pioneer of the format of ‘over the table barbeque’ concept in Indian restaurants. Live grills embedded in dining tables allow the guests to grill their own barbecues. The company believes that its restaurants, compared to other fixed-price dining options, offer competitive attractions such as a wide range of vegetarian and non-vegetarian appetizers and main courses, a popular dessert menu, a pleasant and casual dining environment, and prompt service thereby making it a popular destination for celebrations.
The company also periodically runs popular food festivals at its restaurants offering its guests a range of Indian, international, and fusion cuisines.
The company was initially incorporated as Sanchi Hotels Private Limited in 2006 and launched the first Barbeque Nation restaurant at Pali Hill, Mumbai. In 2007, the company opened restaurants in Indira Nagar and Kormangala (Bengaluru), and Banjara Hills (Hyderabad). The company’s name changed to Barbeque Nation Hospitality Private Limited in 2008 and converted into a public company a month later. Also, in 2008, it started its first restaurant in T Nagar, Chennai. By 2012, the company had opened its 25th Barbeque Nation restaurant in Mumbai.
In 2013, the company received investment from CX Partners Fund I Limited through TPL and investment by AAJVIT. Over the next two years, the company introduced the concepts of Live Counters and Kulfi Nation across its restaurants. By 2016, the company launched its 75th restaurant in India and the first Barbeque Nation restaurant in Dubai. In 2018, it received investment from Alchemy India and Partner Reinsurance and expanded its international footprint in the Asia Pacific region by setting up a Barbeque Nation restaurant in Kuala Lumpur, Malaysia.
It also opened its 100th restaurant in Dimapur, Nagaland, and launched UBQ by Barbeque Nation to provide a la carte Indian cuisine in the value segment. By 2020, the company had 149 restaurants, increased its international presence, and launched “Barbeque-in-a-Box”, a product offering available online.
Here is a quick look at the financial performance of Barbeque Nation Hospitality Limited over the last three years:
|Mar 2020||Mar 2019||Mar 2018|
|Profit After Tax||-32.93||-38.39||-5.80|
All amounts in INR Crore
A quick glance at the financial performance of Barbeque Nation over the last three years offers the following insights:
In India, the food services market has evolved since the 1980s when there were more unorganized players than organized players. In 1996, this sector experienced a major change with the opening of restaurants by McDonald’s, Pizza Hut, and Domino’s, followed by the entry of players like Subway and Barbeque Nation, and the expansion of legendary home-grown players like Haldirams and Moti Mahal.
In FY 2020, the size of the food services market in India is estimated at Rs 4.23 lakh crores and is projected to grow at a CAGR of 9% over the next 5 years to reach Rs 6.51 lakh crores by FY 2025. The organized market (chain and organized standalone outlets, excluding Restaurants in Hotels) is estimated at Rs 1.6 lakh crores in FY 2020 and is projected to grow at a CAGR of 15%, to reach Rs 3.2 lakh crores by FY 2025.
In FY 2021 due to COVID, the food services market is expected to show a dip of 53% in comparison to that in FY 2020. Similarly, in FY 2021, Chain market is expected to show a dip of 42% in comparison to FY 2020.
Here is a quick look at the performance of Barbeque Nation in comparison to its peers (according to the RHP) on some key aspects for FY 2020.
|Profit After Tax||Debt to Equity Ratio||Return on Net Worth (RoNW)|
|Barbeque Nation Hospitality Limited||-32.93||41.41%||-556.59%|
|Jubilant Foodworks Limited||278.80||–||23.51%|
|Westlife Development Limited||36.59||0.31%||-1.27%|
|Speciality Restaurants Limited||-38.16||–||-23.20|
|Burger King India Limited||-76.57||0.85%||-26.22%|
All amounts in INR Crore
As you can see, compared to its listed peers, Barbeque Nation has a very low return on net worth (RoNW).
Let’s look at the valuation factors of Barbeque Nation in comparison with its peers:
|Earnings Per Share (diluted)||P/E Ratio|
|Barbeque Nation Hospitality Limited||-11.77||–|
|Jubilant Foodworks Limited||21.22||140.05|
|Westlife Development Limited||-0.47||Negative|
|Speciality Restaurants Limited||-8.09||Negative|
|Burger King India Limited||-2.87||Negative|
As per the peer group selected by Barbeque Nation in the RHP, the average PE Ratio is 140.05. Since its EPS is negative, PE ratio is negative too and hence cannot be computed.
Barbeque Nation Hospitality Limited proposes to utilize the net proceeds from the fresh issue for:
You can apply for the Barbeque Nation Hospitality Limited IPO by using one of these two methods of payment:
Here are some things that you need to keep in mind before investing in the Barbeque Nation IPO:
Q1. What is the Barbeque Nation Hospitality Limited IPO?
The Barbeque Nation Hospitality Limited IPO is a Main Board IPO for the issue of equity shares having a face value of Rs.5 totaling up to Rs.452.87 crores. The registrar for the IPO is Link Intime India Private Limited and the shares are proposed to be listed on the BSE and NSE.
Q2. What are the open and close dates of the Barbeque Nation Hospitality Limited IPO?
The Barbeque Nation Hospitality Limited IPO opens on March 24, 2021, and closes on March 26, 2021.
Q3. What are the lot size and minimum order quantity of the Barbeque Nation Hospitality Limited IPO?
The lot size of the Barbeque Nation IPO is 30 shares. Also, the minimum order quantity is 30 shares.
Q4. What are the allotment and listing dates of the Barbeque Nation Hospitality Limited IPO?
According to the DRHP, the basis of allotment will be finalized by April 01, 2021. Further, investors can expect to receive the credits in their demat accounts by April 06, 2021.