Barbeque Nation IPO Fully Subscribed On Day 1

Retail investors lapped up shares of Barbeque Nation Hospitality Ltd. on the first day of its initial public offering, deriving optimism from the success of recent share sales.

The Rs 452.87-crore IPO was subscribed 1.33 times as of 5 p.m. on March 24, according to exchange data. The IPO will close on March 26.

Subscription Details:

• Institutional investors: 0.37 times.
• Non-institutional investors: 0.07 times.
• Retail investors: 6.14 times.
• Employees: 0.41 times.

The restaurant chain that grills chicken tikka to potatoes on the table is selling shares at Rs 498-500 apiece in its initial public offer. It comprises a fresh issue of Rs 180 crore and an offer-for-sale worth Rs 272.85 crore, according to its red herring prospectus.

Barbeque Nation plans to use Rs 54.6 crore from the issue as capital expenditure to expand and open new restaurants, and Rs 75 crore towards prepayment or repayment of all or a portion of certain outstanding borrowings on a consolidated basis.

After the IPO, promoter shareholding in restaurant chain will decline from 47.8% to 38.1%.

IIFL Securities Ltd., Axis Capital Ltd., Ambit Capital Pvt. and SBI Capital Markets Ltd. are the book-running lead managers for the issue.