- July 25, 2018 / 3 min readThe Bengaluru-headquartered Barbeque-Nation which pioneered over the table barbeque concept in Indian restaurants filed its Draft Red Herring Prospectus DRHP for its maiden IPO in August 2017
Alchemy Capital, an investment fund co-founded by Rakesh Jhunjhunwala, has bought about 3.5 per cent stake in restaurant chain Barbeque-Nation Hospitality for Rs 90 crore. The fund acquired the stake as part of a pre-initial public offering deal, valuing the company, promoted by Sayaji Hotels, at around Rs 2,300-2,400 crore, said investment bankers.
The Bengaluru-headquartered Barbeque-Nation, which pioneered ‘over the table barbeque’ concept in Indian restaurants, filed its Draft Red Herring Prospectus (DRHP) for its maiden IPO in August 2017. The IPO is estimated to raise over Rs 700 crore, according to merchant banking sources. As per the DRHP, the issue comprises a fresh issue of shares of Rs 200 crore and an offer for sale of up to 61,79,000 equity shares from certain selling shareholders.
In 2013, Ajay Relan-founded CX Partners invested close to Rs 110 crore, followed by an additional investment of Rs 103 Crore in 2015.
According to Technopak, the chain Casual Dining Restaurant (CDR) segment is one of the fastest growing segments in the Indian restaurant industry and is projected to grow at a Compounded Annual Growth Rate (CAGR) of approximately 21 per cent from Fiscal 2017 to Fiscal 2022.
According to its DRHP filed in August 2017, Barbeque-Nation had 81 restaurants in India as on June 30, 2017. The public offer will result in around 30per cent stake dilution on a postoffer basis, said another person familiar with the development. According to the company’s DRHP, the company trebled its revenue from Rs 184 crore to Rs 503 crore during the fiscal 2013 to 2017.
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