Barbeque Nation Hospitality Limited, the single largest player in the organised dining space has refiled a fresh draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO). The Issue comprises a fresh issue of shares of Rs. 275 and an offer for sale of up to 98,22,947 equity shares. The Company may consider to do a pre ipo placement not exceeding Rs. 150 crore, as stated in the DRHP.
The promoters of BNHL are Sayaji Hotels, Sayaji Housekeeping Services, Kayum Dhanani, Raoof Dhanani and Suchitra Dhanani and is backed by private equity investor, CX Partners who made its first investment 2013 and again in 2015.
The Promoter and Promoter group holds 60.24 percent, CX Partners owns 33.79 percent and renowned stock market investor Rakesh Jhunjhunwala's investment firm Alchemy Capital holds 2.05 percent in the company owned and company operated restaurant chain.
IIFL Securities Limited, Axis Capital Limited, Ambit Capital Private Limited, and SBI Capital Markets Limited are the Book Running Lead Managers to the issue.
Up to 50 per cent of the offer will be available for allocation to qualified institutional buyers (QIBs). Further, up to 15 per cent of the offer shall be available for allocation on a proportionate basis to non-institutional bidders and 35 per cent of the offer will be available for the allocation to retail individual bidders.
According to market sources, the Issue size will approximately be between Rs. 1000-1200 crore. The proceeds of the issue will be utilized to repay an outstanding borrowing of Rs 205 cr in part or full and general corporate purposes.
As a part of its expansion plans, BNHL which pioneered the format of over the table barbeque concept in indian restaurants, has diversified itself, the cuisine offered and customer segement outreach by recently acquiring 61.35% stake in Red Apple Kitchen which owns a well-established brand, Toscano, a casual dining Italian restaurant chain which currently has 10 outlets operating across Bengaluru and Chennai. Additionally through its existing kitchen infrastructure, it launched UBQ in November 2018 to provide a la carte Indian cuisine in the value segement which is currently being availed by delivery across 71 cities.
The consolidated total revenue from continuing operations, EBITDA and Adjusted EBITDA of the company grew from Rs. 4,985.81 million, Rs. 1,217.33 million and Rs. 695.69 million, respectively, in FY2017 to Rs. 7,425.41 million, Rs. 1,493.87 million and Rs. 777.31 million, respectively, in FY2019, at a CAGR of 22.04%, 10.78% and 5.70%, respectively.
Since its earlier filing in August 2017, the fast growing restaurant chain has opened up 59 new outlets and is currently operating 138 outlets across 78 cities across 24 states in India and 7 outlets in UAE, Oman and Malaysia. The restaurant has seen 14.29 % CAGR increase in its in dining covers in India which has grown from 6.86 mn in FY17 to 8.96 mn in FY 19, pillared by referrals and recommendations of customers.
According to Technopak, the chain CDR market is one of the fastest growing segments in the Indian restaurant Industry and is projected to grow at a CAGR of 20% between FY19-FY24.