On 13.07.2020 Barbeque Nation got approval from SEBI for IPO. Now they have to bring an IPO within one year from this approval date.
Barbeque Nation owns and operates one of India's leading casual dining restaurant chains according to the Technopak Report. The first Barbeque Nation Restaurant was launched in 2005 by Sayaji Hotels, one of their promoters.
From the inception, they have steadily grown their owned and operated Barbeque Nation Restaurant network from a single restaurant in Fiscal 2007 to 147th outlet in India and 154th internationally as in 2020.
In 2018, when Rakesh Jhunjhunwala invested 90 cr in the company at that time it was valued around 2300-2400 cr.
As per the balance sheet of 2018-19, they have ~2.80 cr shares. So, if we take a valuation of 2300 cr, then per share price comes out to be 821-857.
Moreover, as per yesterday news published in Mint,
“The IPO comprises a fresh issue of shares worth Rs 275 crore and an offer-for-sale of up to 98,22,947 equity shares, according to the draft papers filed with the Securities and Exchange Board of India (SEBI).”
If we remove the fresh issue part of 275 cr from the lower end of 1000 cr, then the value per share would be 720 per share. And at the upper end of 1200 cr, then value per share would be 943.
As Covid-19 has made the situation bad especially for the hotel and restaurant sector, the IPO will not come at least in the next 6 months. They will probably time the IPO when the hotel and restaurant sector starts functioning. The IPO price would be in the range of 800-900.
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