New Delhi: The Securities and Exchange Board of India (Sebi) has kept processing of Barbeque Nation Hospitality Ltd’s proposed initial public offering (IPO) in abeyance “pending regulatory action for past violations”, the latest update with the markets regulator showed.
However, Sebi did not clarify on whether violations have been committed by the company or related entities. The company had filed draft papers with Sebi in August, seeking approval to float its IPO. The proposed IPO of the firm, which operates Barbeque Nation restaurants, comprises fresh issue of shares worth up to Rs200 crore, besides an offer for sale of up to 61.79 lakh shares by promoters.
According to people familiar with the matter, the public issue was expected to mobilise Rs700 crore. The Bengaluru-based firm proposed to use the proceeds of the IPO towards expansion of Barbeque Nation restaurants in the country and repayment of loans.
Without disclosing the nature of violations, Sebi said it has kept the processing of IPO “in abeyance pending regulatory action for past violations”, according to the latest update as on 29 September.
IIFL Holdings, Edelweiss Financial Services, Jefferies India and SBI Capital Markets have been appointed to manage the company’s public issue.