India’s Barbeque Nation re-files for IPO

A previous attempt at a listing in 2017 was abandoned due to concerns over impending regulatory action raised by the Securities & Exchange Board of India (SEBI). More than two years since obtaining approval for a domestic offering, the company has filed a draft red herring prospectus. The pricing of the shares on offer will be determined at a later date. 

Existing PE investors include CX Partners, which currently holds a 21.62% stake. The private equity firm initially invested $20 million in 2013, and committed another INR1 billion two years later, according to AVCJ research. It trimmed its shareholding through a secondary sale in 2017. 

Barbeque Nation plans to issue an undisclosed number of new shares worth INR2.75 billion ($38.4 million), while existing investors will sell 9.82 million shares, which equates to a 35.76% stake, pre-dilution.

Founded in 2005, the company was previously a part of the restaurant operations of publicly listed Sayaji Hotels, an Indore-headquartered hotel network. The restaurants aim to create a unique customer experience by allowing guests to cook their own food at grills embedded in the tables. Barbeque Nation was the first Indian restaurant chain to introduce this concept.  

The company now counts 138 Indian restaurants and seven outlets abroad in its network and serves select low-cost dishes for delivery under a different brand name. It is also majority owner of the holding company behind the La Terrace Italian restaurant chain.

In the 12 months ended March 2019, Barbequeue Nation posted a net loss of INR383.8 million. It saw revenue jump by 25% year-on-year to INR7.42 billion. However, it continued to lose money in the following six months – according to the prospectus, it registered a loss of INR93.6 million over the period.

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