Barbeque Nation share value slips on itemizing; buying and selling begins 1.6% down from IPO value


Barbeque Nation is one among India’s main informal eating restaurant chains with 164 eating places.

Rakesh Jhunjhunwala backed Barbeque Nation Hospitality made a weak itemizing on the inventory exchanges at this time. Shares of the agency started buying and selling at Rs 492 per share, down 1.6% from the problem value of Rs 500 apiece. Barbeque Nation is the eighteenth inventory to record on the bourses this yr and the primary to debut within the new monetary yr. On debut, Barbeque Nation Hospitality shares had a market capitalization of Rs 1,847 crore. Ace investor Rakesh Jhunjhunwala’s Alchemy Capital owns a stake in Barbeque Nation Hospitality.

Examine reside value: Barbeque Nation Hospitality 

Barbeque Nation increase Rs 452 crore from the problem earlier final month, with buyers from all classes oversubscribing their portion of the IPO. The IPO of Barbeque Nation was subscribed practically 6 occasions by buyers. Bids have been acquired for two.99 crore shares towards 49.99 lakh shares on provide. Publish situation, promoter shareholding within the firm will drop to 37.8% from 47.8% pre-issue, whereas public shareholding will improve from 52.2% to 62.2%.

Barbeque Nation is one among India’s main informal eating restaurant chains with 164 eating places. Additional, the corporate owns a 61.35% stake in an organization referred to as “Crimson Apple”, which operates 11 Italian delicacies eating places. The agency operates numerous eating places in metro cities the place common billing reaches practically Rs 900 in comparison with Rs 650 in tier-II & tier III cities. Over the following two years, the corporate could be spending Rs 90 crore to develop its operations in current cities.

Home brokerage agency ICICI Direct, earlier in a be aware stated that on the IPO value, Barbeque Nation is at 2.4x FY20 EV/gross sales. “The chain CDR trade is anticipated to develop at a sooner tempo over the following 5 years. Nevertheless, we imagine the larger measurement eating places and limitation in scaling up supply gross sales can impression the expansion for the corporate,” they stated. 

In the meantime, Sure Securities in a be aware highlighted {that a} pre-IPO allotment was completed by the agency earlier in December and January at 50% lower than IPO value. “We additionally be aware that earlier fundraises in 2018 have been completed at a a lot larger value, however fundamentals have deteriorated since,” Sure Securities added whereas pinning an ‘Keep away from’ tag on the problem.

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