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In news from the IPO space...

The public issue of causal dining restaurant chain Barbeque Nation Hospitality was subscribed 4.2 times the time of closing stock market hours today - the final day of bidding.

The portion set aside for qualified institutional buyers witnessed a subscription of 3.6% and that of non-institutional investors received 24% bids.

The retail investors seem to be bullish on the last public issue in the month of March as their part was subscribed 11.9 times, while employees have put in 87% bids against their reserved portion.

The company has fixed a price band of Rs 498-500 per share for its initial share sale.

The initial public offer (IPO) comprises a fresh issue of shares worth Rs 1.8 billion and an offer-for-sale (OFS) of up to 54,57,470 equity shares.

At the upper end of the price band, the IPO is expected to fetch Rs 4.5 billion.

The company has already raised Rs 1.5 billion through a pre-IPO placement from Xponentia Capital and Jubilant Foodworks.

Proceeds from the issue will be utilized to fund the company's capital expenditure for expansion and opening of new restaurants besides, prepayment or repayment of certain borrowings and expenses related to general corporate purposes.

As of December 2020, Barbeque Nation Hospitality operates 147 outlets across India and six outlets across three countries - UAE, Oman, and Malaysia.

Speaking of IPOs, note that four companies - Anupam Rasayan India, Craftsman Automation, Laxmi Organic Industries, and Kalyan Jewellers will make their stock market debut this week.

In the first quarter of 2021, 16 companies launched public issues. Barbeque Nation Hospitality is the 17th public offer in Q1CY21.

With this, the total fundraising in 2021 through the primary market, so far, stands at Rs 188 billion.

How the IPO of Barbeque Nation performs remains to be seen.

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Disclosure: Equitymaster Agora Research Private Limited (Research Analyst) bearing Registration No. INH000000537 (hereinafter referred as 'Equitymaster') is an independent equity research ...

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