The issue received bids for 9.99 equity shares against the offer size of 4.99 million shares, the subscription data available on exchanges showed
The net fresh issue proceeds will be used for repaying of debts availed by the company
Mumbai: The initial public offer of Barbeque Nation Hospitality was subscribed 1.98 times on the second day of bidding as apart from retail investors, other categories did not see much bidding action. The issue was subscribed over 1.3 times on Wednesday, the first day of the public offer.
The issue received bids for 9.99 equity shares against the offer size of 4.99 million shares, the subscription data available on exchanges showed.
Retail portion was subscribed the most with 9.66 times more than their reserved portion. Non-institutional investors was subscribed 10% and that of employees 70%, while qualified institutional buyers was subscribed 37%.
Analysts at Yes Securities in an IPO note said "Despite relatively high EBITDA margins, the company has not yet turned profitable given the high depreciation and interest costs which have ballooned on account of aggressive store expansion".
Barbeque Nation Hospitality is planning to mop up ₹452.87 crore through public issue including fresh issue of ₹180 crore. The net fresh issue proceeds will be used for repaying of debts availed by the company.
Barbeque Nation Hospitality operates one of India's leading casual dining restaurant chains. The company owned 164 restaurants as on December 2020, which includes 147 Barbeque Nation Restaurants in 77 cities in India, six international restaurants in India and six outside India.
The company also owns Italian restaurant brand Toscano with other two brands La Terrace and Collage. The company pioneered the over-the-table-barbeque concept.