Barbeque Nation IPO subscribed 1.33 times on Day 1 of subscription

The initial public offer of casual dining chain Barbeque Nation Hospitality Limited was subscribed 1.33 times on Wednesday, the first day of subscription.

The Rs 453-crore issue received bids for 66,46,830 shares against 49,99,609 shares on offer, as per NSE data.

The portion meant for qualified institutional buyers (QIBs) was subscribed 37 percent, non-institutional investors seven percent and retail individual investors (RIIs) 6.14 times.

The initial public offer comprises a fresh issue of Rs 180 crore and an offer for sale of 54,57,470 equity shares. The price range for the offer is Rs 498-500 per share.

Barbeque Nation Hospitality on Tuesday raised Rs 203 crore from anchor investors. It is backed by private equity investor CX Partners and renowned stock market investor Rakesh Jhunjhunwala's investment firm Alchemy Capital.

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Proceeds of the fresh issue will be utilised to fund the company's capital expenditure for expansion, besides prepayment or repayment of certain borrowings and expenses related to general corporate purposes.

The company is promoted by Sayaji Hotels, Sayaji Housekeeping Services, Kayum Dhanani, Raoof Dhanani and Suchitra Dhanani. It is backed by private equity firm CX Partners, which made its first investment in 2013 and again in 2015.

Barbeque Nation Hospitality owns and operates Barbeque Nation Restaurants.

Axis Capital Partners Limited, IIIFLecurities Limited, Ambit Capital Private Limited and SBI Asset Management Markets Limited are the managers to the offer.

Barbeque Nation on Tuesday raised Rs 203 crore from anchor investors ahead of its initial share-sale, and the company's IPO committee has decided to allocate 40,57,861 shares at Rs 500 apiece to 21 anchor investors.

At this price, the company raised Rs 202.89 crore, according to a statement.

The anchor investors include Goldman Sachs India Ltd, Nomura Funds Ireland Public Limited Company, Fidelity Investment Trust, SBI Mutual Fund (MF), ICICI Prudential MF, Kotak MF, Aditya Birla Sunlife MF, HDFC MF, HDFC Life Insurance Company, Kuber India Fund, Pioneer Investment Fund, and UPS Global Trust.

(Disclaimer: Additional background information has been added to this PTI copy for context)