Barbeque Nation IPO Review

One of the leading casual dining chains in India, Barbeque Nation pioneered the concept of “over the table barbeque” live grills embedded in dining tables – allowing guests to grill their own barbecue’s right at their tables. Company is raising Rs 452.87 Crores through this IPO.

IPO opens onMar 24, 2021
IPO ends onMar 26, 2021
Share Listing dateApr 07, 2021
Face valueRs 5 per equity share
IPO PriceRs 498 to 500 per share
Outstanding equity share prior to offer33942920 Equity Shares
Fresh issue amountRs 180 Cr
Offer for saleRs 272.87 Cr (5457470 Equity Shares assuming higher band price)
Market Lot Size30 shares
Max lots per retail investor13 lots (Rs 195000 assuming higher band price)
Pre-IPO Market cap (assuming higher band price)Rs 1697.15 Cr
Post-IPO Market cap (assuming higher band price)Rs 1877.15 Cr

Sales and Profit/Loss data

Here is Barbeque Nation’s revenue/sales and net profit data in INR Crores

Nov 30 2020 (8 months)Mar 31 2020 (1y)Mar 31 2019 (1y)Mar 31 2018 (1y)
Total Revenue201.00846.97739.01586.34
Net profit-100.65-32.93-21.20-6.78
Revenue growth14.6%26.03%

Company valuation

Barbeque Nation is small cap company and its post IPO market cap is Rs 1877.15 Cr. at the upper band of IPO price and their total sale is Rs. 846.97 Cr in 2019-20. Since Hospitality industry is heavily impacted by covid, it might be better to consider 2019-20 revenue profit for evaluation purpose. The market cap to 2019-20 annual sale ratio is 2.21. The price to same ratio consider 2020-21 year (extrapolated sales) would be 14. The actual ratio can be considered somewhere between these two.

It may take some time for the restaurant to reach to normal sales. So there may not be much listing gain. So this is slightly riskier IPO and investors should keep the risk in mind before applying for this IPO.