- Barbeque Nation is India’s leading casual dining restaurant chain in terms of the number of outlets as of September 30, 2020
- The company operates nine casual dining Italian restaurant chain under the brand ‘Toscano’. The first Toscano restaurant commenced operations in June 2008
- In November 2018, the company launched UBQ by Barbeque Nation restaurant to provide a la carte India cuisine in the value segment, which currently caters to the delivery segment
- Pioneer of the concept of ‘over the table barbeque’ amongst Indian restaurants
- The Chain Casual Dining Restaurant (Chain CDR) market has been flourishing in India and will continue to thrive in the coming years
Barbeque Nation was initially incorporated as Sanchi Hotels in 2006 at Indore, Madhya Pradesh. The first Barbeque Nation Restaurant was launched the same year by SHL, one of the promoters.
The current name was adopted subsequently in 2008 when the first restaurant began operations, followed by acquiring five restaurants in 2012. As of December 2020, Barbeque Nation operates 147 restaurants across 77 cities in India and six International Barbeque Nation restaurants in three countries outside India. The store expansion in India has been steady over the years:
Barbeque Nation Hospitality IPO opens for subscription between March 24 to March 26, 2021.
A negative margin over the years, and net worth turning negative in November 2020 is a huge cause of concern.
About the promoters of Barbeque Nation
Sayaji Hotels Limited, Sayaji Housekeeping Services Ltd., Kayum Dhanani, Raoof Dhanani, and Suchitra Dhanani are its promoters.
About Sayaji Hotels Limited (SHL)
SHL got incorporated as Monali Land and Housing Company Private Limited in April 1982 at Ahmedabad. In 1987 the name got changed to SHL.
The company is engaged in constructing and operating motels, hotels, bars, restaurants and clubs, providing lodging and boarding, eating houses, swimming pools and other facilities.
SHL’s equity shares have been long-listed in BSE since October 1992.
About Sayaji Housekeeping Services Limited (SHKSL)
SHKSL got incorporated in 2016 and is engaged in providing services and expertise for various cleaning and housekeeping requirements.
It carries on the business of offering workforce, machines and material connected with housekeeping and cleaning requirements.
Below is the condensed financial information of Barbeque Nation.
Amounts in Rs Cr excluding per share data*Not meaningful as the net worth is negative
- The company compares itself with Jubilant Foodworks Limited as a peer, which has a P/E of 140x
Comparison of other accounting ratios with industry peers
|Fresh issue of shares||Rs 180.0 Cr|
|Offer for sale of 54,57,470 eq. shares||Rs 272.9 Cr|
|Gross issue size||Rs 452.9 Cr|
Utilization of proceeds:
- Capital expenditure for expansion and opening of new restaurants
- Prepayment/repayment of all or a portion of certain outstanding loans
- General corporate expenses
The information provided in the red herring prospectus filed by the company with the Securities and Exchange Board of India (www.sebi.gov.in) is the basis for this note. However, I recommend that the reader validate the data before making any financial decision. Also, investment in an initial public offering (IPO) is subject to market risks. It should be evaluated, keeping your risk profile and investment objective in mind. The author will not be responsible for any financial loss or otherwise resulting from any action taken based on the above.
The author is a senior finance professional with over fifteen years of work experience in corporate finance and has an affinity for personal finance and investment management. Please leave your comment or share thoughts on this article via email at email@example.com. For more articles, please visit the website www.decodefinance.in
The author has used his knowledge, experience, and understanding of the subject to write this article. Any views, opinions, and thoughts mentioned in the article belong solely to the author and not necessarily to the author’s employer (past or current), organization, committee, or other group or individual.
Under no circumstances shall the author be liable for any views or analysis expressed in this note. Further, the opinions expressed are not binding on any authority or Court. We advise readers to consult their financial advisor for assistance in their specific case.