Barbeque Nation shares soar by 20% shortly after weak IPO listing

According to reports, the share listed at Rs 492, against the issue price of Rs 500 on the BSE. The company raised Rs 453 crore through its public issue held from 24 to 26 March

FP Trending April 07, 2021 15:25:33 IST
Barbeque Nation shares soar by 20% shortly after weak IPO listing

Representational image.

The shares of Barbeque Nation, one of the leading casual dining restaurant chains in the country, sprung up a surprise and jumped 20 percent, to Rs 590.40, after debuting at a discount of 1.6 percent, on Wednesday 7 April, reported the Business Standard.

The share listed at Rs 492, against the issue price of Rs 500 on the BSE. After initial hesitation, possibly due to the ongoing COVID-19 pandemic and the resultant restrictions, the investors appeared to have shown faith in the long-term prospects of the firm backed by top investor Rakesh Jhunjhunwala.

Barbeque Nation currently owns and operates 138 outlets in India, 5 in the UAE, 1 each in Malaysia and Oman. The main objective of the initial public offering (IPO), in which shares of a company are sold to institutional and retail investors allowing the firm to raise capital, is to use the proceedings to make prepayment or repayment of all or a part of its outstanding borrowings and meet general corporate purposes.

According to a Business Standard report, the company raised Rs 453 crore through its public issue held from 24 March to 26 March. While it has posted a revenue growth of 20 percent CAGR (annual growth of investment) between FY18-FY20, it has been incurring losses at PAT level despite topline growth.

Barbeque Nation also owns Toscano restaurants and UBQ by Barbeque Nation that caters to the delivery segment. The promoters of the company include Sayaji Hotels, Sayaji Housekeeping Services, Kayum Dhanani, Raoof Dhanani and Suchitra Dhanani.

For holding an IPO, the Securities and Exchange Commission (SEC) has laid certain guidelines that a company must meet. Companies hire investment banks to market and set the IPO price and date of listing. When a company goes public, the previously owned private share ownership converts to public ownership.

Updated Date:

also read

Fewer than half of Americans 'OK' to attend live sports events owing to COVID-19: Poll
Sports

Fewer than half of Americans 'OK' to attend live sports events owing to COVID-19: Poll

Among US regions, the most comfortable attending a sports event were people in the Midwest at 47% with those in the South and West at 42% and those in the Northeast at 34%.

Supporters set to return to Wembley for League Cup final with attendance capped at 8,000
Sports

Supporters set to return to Wembley for League Cup final with attendance capped at 8,000

The council said each attendee has to return a negative lateral flow COVID-19 test 24 hours before attending the game and show proof to gain entry. They will also need to take a PCR home test after the event.

India sees over 72k fresh COVID-19 cases as vaccinations of all above 45 begin; Mumbai mayor hints at lockdown
India

India sees over 72k fresh COVID-19 cases as vaccinations of all above 45 begin; Mumbai mayor hints at lockdown

More than 6.5 crore vaccine doses have been administered across the country so far, including frontline and healthcare workers as well a section of the population aged 45 but with comorbidities and some above 60 years of age