India's PE-backed Barbeque Nation files for IPO

Barbeque Nation will offer an undisclosed amount of fresh shares for sale, according to the prospectus, while existing shareholders will sell up to 6.2 million shares, including 4.8 million shares held by CX. Pricing for the shares has not been announced. CX currently holds 6.3 million shares, a 23.2% stake.

The company hopes to raise at least INR2 billion ($31 million) from the fresh issue, INR850 million of which will be used for repayment or pre-payment of debts by the company or its subsidiaries. Another INR685 million will be used for adding new restaurants, with the rest intended for general corporate purposes.

Barbeque Nation began in 2005 as a single restaurant owned by Sayaji Hotels, now one of the company’s promoters. As of June the company operated 81 restaurants in 42 cities across India, along with one in Dubai. It has also granted franchise rights to one outside operator.

The restaurants aim to create a unique customer experience by allowing guests to cook their food themselves at grills embedded in the tables. Barbeque Nation was the first Indian restaurant chain to introduce the concept, which is similar to Korean barbecue. Its offerings include both vegetarian and non-vegetarian appetizers and main courses, involving Indian, international and fusion cuisine.

Along with its own brand, the company recently became the Indian franchisee of US-based hamburger chain Johnny Rockets. It currently operates five Johnny Rockets restaurants, with another under construction.

Fixed price casual dining is becoming increasingly popular among Indian consumers for its convenience, quick service and relatively low cost. The segment grew at 19% a year between 2013 and 2017, a figure expected to increase to 21% from 2017 to 2022.

For the year ended March 2017, Barbeque Nation recorded INR4.8 billion in revenue, up from INR3.9 billion the year before. Over the same period net profit grew from INR126 million to INR158 million.

CX has made two investments in Barbeque Nation, according to AVCJ Research. The firm initially invested $20 million in 2013, and committed another INR1 billion two years later.

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• Topics
• South Asia
• Consumer
• IPO
• India
• CX Partners