Home / Companies / Bengaluru pub chain Pecos to file for IPO

Bengaluru: Pecos Hotels and Pubs, which runs the popular Pecos chain in the city, is coming out with an initial public offer (IPO), the company informed BSE on Monday.

The funds, said the company’s note to BSE, will be used to add another pub in the city. Apart from expansion, the money will be used for modernization, infrastructure and putting proper processes in place, the company’s promoters said.

Pecos chairman and managing director Collin Richard Timms said that the money will be used to improve the top line and bottom line of the company.

Pecos is coming out with an IPO of 459,000 equity shares of face value of 10 each for cash at a fixed price of 50 per equity share, the company said in a filing to BSE. The issue will open on 23 July and close on 28 July.

Pecos, which has four branches in the city, started its first pub on Rest House Road in 1989. With its religious following of patrons, it has stood the test of time despite the mushrooming pub culture as well as micro breweries in the city in recent years.

The chain’s expansion comes at a time when bars and restaurants across top metros are looking at scaling operations. Earlier this month, Azzure Hospitality, which owns the Mamagoto chain of Asian restaurants, raised $ 10 million from Goldman Sachs.

Timms said that the promoters may eventually consider expanding to other cities, but for at least the next two to three years, it would consider scaling up operations in Bengaluru.

For the financial year ending 31 March 2014, Pecos registered a net profit of 1.2 lakh on sales of 2.92 crore in the same period.

The Indian food and beverage industry is projected to grow to 408,040 crore by 2018 at a compound annual growth rate of 11%, according to a survey commissioned by the National Restaurant Association of India.

ABOUT THE AUTHOR

Suneera Tandon

Suneera Tandon is a New Delhi based reporter covering consumer goods for Mint. Suneera reports on fast moving consumer goods makers, retailers as well as other consumer-facing businesses such as restaurants and malls. She is deeply interested in what consumers across urban and rural India buy, wear and eat. Suneera holds a masters degree in English Literature from the University of Delhi.
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