Barbeque Nation Hospitality has received approval from markets regulator Sebi (Securities and Exchange Board of India) to go ahead with its initial public offering (IPO). The company's public offering will consist of a fresh issue of of shares worth an estimated Rs 200 crore and an offer for sale (OFS) of up to 6,179,000 equity shares, according to the draft red herring prospectus. Barbeque Nation Hospitality is estimated to raise Rs 700 crore from the IPO. Barbeque Nation, which started in 2006-07 with a single restaurant, has expanded to 81 outlets, as of June 30, 2017. Barbeque Nation Hospitality owns and operates casual dining restaurant chain Barbeque Nation Restaurants.
Here are five things to know about the proposed Barbeque Nation Hospitality IPO:
1) The company had filed its draft papers with Sebi in August last year and obtained "observations" from the regulator on January 5, 2018, the latest update with markets watchdog showed. Sebi 'observations' are very important for any company to launch a public offer.
2) The IPO offer worth an estimated Rs 700 crore includes a reservation of up to 1.5 lakh equity shares for the company's employees.
3) Proceeds from the issue will be utilised towards setting-up of new Barbeque Nation restaurants in India, repayment of loans, and general corporate purposes.
4) Earlier, the regulator had kept the processing of the company's proposed IPO in abeyance "pending regulatory action for past violations".
5) IIFL Holdings, Edelweiss Financial Services, Jefferies India and SBI Capital Markets are the book running lead managers to the issue.
(With PTI inputs)