Indian dining chain Barbeque Nation’s IPO gets subscribed almost 6 times

Indian dining chain Barbeque Nation’s IPO gets subscribed almost 6 times
The initial public offering (IPO) from casual dining chain Barbeque Nation⁠ — popular for its generous buffets ⁠— has been subscribed by 5.98 times by close.Barbeque Nation
  • Barbeque Nation is looking to raise ₹180 crore from fresh issue of shares and an offer for sale up to 54.5 lakh shares.
  • The basis of allotment for the IPO will be announced on April 1, 2021 while its shares will list by April 7, 2021.
  • The company has grown from a single outlet in 2008 to over 160 restaurants across 77 cities in India and six international restaurants.
The initial public offering (IPO) from casual dining chain Barbeque Nation⁠ — popular for its generous buffets ⁠— has been subscribed by 5.98 times by close. The issue has been a bigger hit with the small investors more than the institutional ones.

The company, which operates the Indian restaurant chain Barbeque Nation and Italian chain Toscano, is looking to raise ₹180 crore from fresh issue of shares and an offer for sale up to 5.45 million shares.

The allotment for the IPO will be announced on April 1 while its shares will list on the stock exchanges by April 7, 2021.

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CategorySubscription Status
Qualified Institutional Buyers5.11 times
Non-institutional 3.10 times
Retail individual 13.12 times
Employees1.02 times

Barbeque Nation is not a new name in the industry. From presence in top metros to smaller cities, the restaurant chain is quite popular across the country. The company has grown from a single outlet in 2008 to over 160 restaurants across 77 cities in India and six international restaurants.

However, while Barbeque Nation’s revenue has grown consistently, over the years, its mounting losses are also a cause of concern.

Indian dining chain Barbeque Nation’s IPO gets subscribed almost 6 times
BI India

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Not surprisingly, Barbeque Nation’s IPO hadn’t impressed a lot of analysts. “The Covid-19 pandemic, too, has had an adverse impact on the operations of the company. Hence, we expect profits will remain under pressure over the medium term,” said Jyoti Roy, DVP- Equity Strategist, Angel Broking who gave a ‘neutral’ rating for the IPO.

Roy’s rationale is that at the higher end of the price band, the shares are expensive compared to the company’s future earnings potential.

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