About Company:

Incorporated in 2006, Barbeque Nation Restaurants is one of the leading casual dining restaurant chains in India. It offers the best quality of food offerings, ambiance, and services to customers. It also owns and operates Toscana Restaurants and UBQ by Barbeque Nation that caters to the delivery segment.

The first Barbeque Nation Restaurant was established in 2008 and as of November 30, 2019, the network has been steadily grown to 138 Barbeque Nation Restaurants in 73 cities in India and 7 International Barbeque Nation Restaurants in 3 countries outside India. The company has recently diversified into another brand "Red Apple" which operates 10 Italian restaurants in 2 cities of India i.e. Bengaluru and Chennai.

Company strengths:

• One of India's fastest-growing restaurant brands.
• Diversified offerings for both vegetarian and non-vegetarians.
• Experienced promoters and managers team.
• Healthy financial position with a proven track record of revenue growth.

Promoters:

Sayaji Hotels Limited, Sayaji Housekeeping Services Limited, Kayum Dhanani, Raoof Dhanani and Suchitra Dhanani.

Object to issue:

1. Offer for Sale (OFS) – In this, selling shareholders would sell their shareholding and company would not get any proceeds from this issue.

Through the OFS, the following shareholders are selling their part equity:

• Sayaji Housekeeping Services Ltd: 10.18 lakh shares
• Azhar Dhanani: 3.39 lakh shares
• Sadiya Dhanani: 3.39 lakh shares
• Sanya Dhanani: 3.39 lakh shares
• Tamara Private Ltd: 33.23 lakh shares
• Aajv Investment Trust: 71,186 shares
• Menu Private Ltd: 26,600 shares

2. Fresh issue of shares which would be utilized for the following:

Through the OFS, the following shareholders are selling their part equity:

1. Capital expenditure for expansion and opening of new restaurants
2. Prepayment or repayment(75cr out of 180 cr) of all or a portion of certain outstanding borrowings availed on a consolidated basis
3. General corporate purposes(55cr of 180cr).

Company Financial Performance:

Its EPS for FY2020 is negative and last 3 years EPS is negative as company has been incurringlosses.

Risk Factors of investing in this IPO:

• Company has been incurring losses in the last 3 years and 8 months.
• The outbreak of the novel coronavirus pandemic and subsequent lockdowns and government of India measures to reduce the spread of Covid-19 had substantial impact on restaurant operations. We do not know how long this pandemic would continue.
• If the company is unable to implement its growth strategy successfully, especially in relationship to selecting cities for new restaurants can adversely affect the company.
• The company has been issued a notice from the National Anti-Profiteering Authority under the GST Act. Any adverse decision can impact company operations.
• Some of the company promoters are involved in SEBI proceedings in relation to certain non-compliances under securities related law.
• One of the non-executive and independent directors has been named in CIBIL suit filed accounts list. In the event if his name comes in wilful defaulter list, company might have adverse impact in its reputation and operations.
• Some of its promoters and directors operates of control entities engaged in a similar
• One of its Promoters and Directors, Raoof Dhanani is involved in a criminal proceeding and in an insolvency proceeding

IPO Price Valuations:

Barbeque Nation IPO Issue Price band is Rs 498 to Rs 500.Since the company has been incurring losses in the last 3 years and 8 months, has negative EPS

Diving into a new business category:

As COVID-19 pandemic made the transition to online inevitable for all companies, Barbeque Nation, which is famous for its dine-in business, jumped into the online delivery model. The company launched a new concept of ‘Barbeque in a box’ for delivery. The delivery business has seen good response and is growing – it does digital numbers as a proportion of revenue.

Barbeque Nation IPO Dates / Time Table / IPO Schedule:

Ipo details:

You should apply for it or not ?

Seeing the current situation, there’s fear of lockdown due to increasing covid cases nationwide and also many risk factors with concern to management one can apply for listing gain and if applying for holding one should have watch on company’s fundamental factor too.

*investment are subject to market risk,read ll documents before investing. We are not SEBI registered advisor please consult SEBI advisor regardingsame.*