Barbeque-Nation Hospitality Limited

Barbeque-Nation Hospitality Limited Initial Public Offering of Equity Shares opening on March 24, 2021

·         Price Band of Rs. 498 – Rs. 500 per equity share of face value of Rs. 5 each (“Equity Share”)

·         Bid/Offer Opening Date – Wednesday, March 24, 2021 and Bid/Offer Closing Date – Friday, March 26, 2021

·         Minimum Bid Lot is 30 Equity Shares and in multiples of 30 Equity Shares thereafter

·         The Floor Price is 99.6 times the Face Value of the Equity Shares and the Cap Price is 100   times the Face Value of the Equity Shares.

Mumbai, March 22, 2021: Barbeque-Nation Hospitality Limited (referred to as BNHL or the Company), one of India’s leading casual dining restaurant chains (in terms of outlet count as on September 30, 2020) according to a report dated February 19, 2021 prepared by Technopak Advisors Private Limited (the “Technopak Report”), will open the bid/offer period in relation to its initial public offering of equity shares (the “Offer”/ “IPO”) on Wednesday, March 24, 2021 and close on Friday, March 26, 2021. The price band for the Offer has been decided at Rs. 498 – Rs. 500 per equity share. The Company and Tamara Private Limited (“TPL”), a selling shareholder, may in consultation with the book running lead managers (the “BRLMs”), consider participation by anchor investors, which shall be one working day prior to the bid/Offer opening date, i.e. Tuesday, March 23, 2021.

The IPO is a fresh issuance of equity shares of Rs 5 face value, aggregating up to Rs 180 cr and an offer for sale of up to 54,57,470 equity shares of face value of Rs 5 each by the selling shareholders. Equity shares aggregating up to Rs. 2 crore will be reserved for eligible employees. The Company proposes to utilise the net proceeds from the fresh issue towards expansion and opening of new restaurants by the Company, prepayment or repayment of certain outstanding borrowings in part or in full availed by the Company on a consolidated basis and for general corporate purposes.

BNHL pioneered the format of ‘over the table barbeque’ concept in Indian restaurants according to the Technopak Report. The first Barbeque Nation restaurant was launched in 2006 by one of the promoters, Sayaji Hotels Limited (“SHL”). BNHL launched its first Barbeque Nation restaurant in 2008 and subsequently acquired five restaurants owned and operated by SHL in 2012. As of December 31, 2020, BNHL currently operates 147 Barbeque Nation restaurants (including opened, temporarily closed and under construction outlets) across 77 cities in India and six international Barbeque Nation restaurants across three countries namely UAE, Oman and Malaysia. BNHL has diversified its offering by acquiring 61.35% stake (on a fully diluted basis) in Red Apple Kitchen Consultancy Private Limited which currently owns and operates Italian restaurants under the brand name “Toscano”, a casual dining Italian restaurant chain operating in Pune, Bengaluru and Chennai, “La Terrace” and “Collage”. The Company has further extended its offerings by introducing UBQ by Barbeque Nation to provide a-la-carte Indian cuisine in the value segment. As of December 31, 2020, the Company was providing delivery in 77 cities in India under UBQ by Barbeque Nation from its existing kitchen infrastructure. It has also launched “Barbeque-in-a-Box” in June 2020 as one of their delivery products. This is in addition to two other products, “Grills in a Box” and “Meals in our Box”, which are offered through delivery among other offerings.

IIFL Securities Limited, Axis Capital Limited, Ambit Capital Private Limited and SBI Capital Markets Limited are the BRLMs to the issue.

The Offer is being made in accordance with Regulation 6(2) of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018 and through a book building process wherein at least 75% of the net offer shall be allotted on a proportionate basis to Qualified Institutional Buyers (“QIBs”, and such portion, the “QIB Portion”). Our Company and TPL may, in consultation with the BRLMs, allocate up to 60% of the QIB Portion to anchor investors on a discretionary basis ("Anchor Investor Portion”), out of which at least one-third shall be available for allocation to domestic mutual funds only, subject to valid bids being received from the domestic mutual funds at or above the anchor investor allocation price. 5% of the QIB Portion (excluding the anchor investor portion) shall be available for allocation on a proportionate basis to mutual funds only, and the remainder of the QIB Portion shall be available for allocation on a proportionate basis to all QIB bidders, including mutual funds, subject to valid bids being received at or above the offer price.

About Barbeque-Nation Hospitality Limited

The promoters of BNHL are SHL, Sayaji Housekeeping Services Limited, Kayum Dhanani, Raoof Dhanani and Suchitra Dhanani. CX Partners Fund I Limited (“CX Partners”), through TPL and AAJV Investment Trust, invested in the Company in 2013. Xponentia Opportunities Fund and Jubilant Foodworks Limited invested in the Company in December 2020 and January 2021 respectively. The promoters and the promoter group hold 47.80% in BNHL and the remaining shares in BNHL are held by public shareholders.

The Company was ranked amongst the top 10 retail companies to work for by the Great Places to Work Institute in 2020 in collaboration with the Retailers Association of India and was ranked number 7 amongst India’s best companies to work for in 2020 by the Great Places to Work Institute in collaboration with Economic Times.