Shares of Barbeque Nation Hospitality debuted at a 1.6 percent discount to its issue price on April 7 amid the resurgence of COVID and high volatility in equities.
The stock listed at Rs 492, against the issue price of Rs 500 on the BSE.
Given the restrictions on hotels, malls, restaurants due to fast-rising COVID-19 infections across the country, experts seem worried about Barbeque Nation in the short-term, though all are positive from a long-term perspective.
Barbeque Nation is India's leading casual dining restaurant (CDR) chains, in terms of outlet count as of September 2020, and international Barbeque Nation Restaurants. The company owns and operates Toscano Restaurants and UBQ by Barbeque Nation Restaurant.
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As of December 2020, the Barbeque Nation Restaurant network had 147 restaurants across 77 cities in India and six International Barbeque Nation Restaurants in three countries outside India.
The company successfully raised Rs 453 crore through its public issue including a fresh issue of Rs 180 crore which would be on net basis utilised for repaying debts.
While the company has posted revenue growth of 20 percent CAGR between FY18-FY20, it has been continuously incurring losses at PAT level despite topline growth. "The COVID-19 pandemic too has had an adverse impact on the operations of the company, hence we expect profits will remain under pressure over the medium term," said Angel Broking.