Barbeque Nation IPO

1. Barbeque Nation Hospitality Limited
- Initial Public Offering

2. About Business -
Barbeque Nation Restaurants is a leading casual dining restaurant chains which
offers the best quality of food offerings, ambiance, and services to customers.
o Concept - “Over the table barbeque”
o CEO - Rahul Agarwal
o Subsidiaries - BN International LLC, BN Holdings Pvt Ltd, BN Malaysia, Red
Apple Kitchen Consultancy
o Presence - UAE, Oman, Malaysia, India
o Promoters - Sayaji Hotels

3. ▸ Barbeque Nation is indulged in offering different varieties of both vegetarian
and non-vegetarian starters along with main courses, a famous dessert
innovative menu. Their services are prompt and the dining environment at
their restaurants is also very casual and pleasant.
▸ Different food festivals are organized by the brand on a periodic basis at their
restaurants in which customers are offered Indian, Fusion, and International
cuisines. Different beverages, desserts, and north Indian dishes with kabab
are also served to customers.
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4. ▸ Barbeque Nation offers a value proposition in its “All you can Eat” menu
and in addition to this, it provides best-in-class service as well to customers
at their restaurants. The customers of the brand mostly come from a group
of family, colleagues, or friends. Therefore, the brand has a diversified
range of menus to fulfill the food preference of customers in a group. A
specially curated menu is also designed specifically for kids.
▸ Barbeque Nation’s value proposition also reflects in its distinctive and
attractive “DIY (Do-it-yourself) cuisine along with the concept of cooked-
at-the-table. In the DIY cuisine system, it allows customers to create dishes
of their own choice and as per their individual tastes by offering both fun
and flexibility to mix and match a vast variety of non-veg., vegetables,
condiments, and sauces. “Live Counters” are there to allow customers to
get the food cooked according to their choice.
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5. IPO Details -
• The Stock got listed at discount on
NSE(2.03%) and BSE(1.6%)
• In the grey market, the GMP of Barbeque
Nation shares has fallen to Rs 10-12 from
Rs 40. The scrip is trading in the Rs 510-
512 range.
• The IPO was subscribed 5.98 times.
• The quote reserved for qualified
institutional buyers (QIBs) was subscribed
5.11 times, those for non institutional
investors 3.10 times, and retail individual
investors' quota 13.13 times.
• The CMP of Barbeque nation is 1405 Inr
(checked on 17/12/21 at 3:30pm).

6. Objects and Lead managers of IPO -

7. Timeline -
IPO
Open
Date
March 24,
2021
IPO
Close
Date
March 26,
2021
Basis of
Allotment
Date
April 1,
2021
Initiation
of
Refunds
April 5,
2021
Credit of
Shares to
Demat
Account
April 6,
2021
IPO
Listing
Date
April 7,
2021

8. Shareholding Pattern -
Source: RHP of Barbeque Nation
12,621,116
6,078,402
3,650,794
3,182,964
1,587,302
645,259
575,000
532,104
522,846
497,893
497,890
497,890
497,890 444,631
385,000
Major Shareholders
1 SHKSL
2 TPL
3 Jubilant
4 PPL
5 Xponentia
6 Zuber Dhanani
7 Alchemy India
8 MPL
9 Kayum Dhanani
10 Sanya Dhanani
11 Azhar Dhanani
12 Saba Jameel Sayed
13 Sadiya Dhanani
14 Zoya Dhanani
15 Partner Reinsurance
1,018,288
339,430
339,430
339,430
3,323,106
71,186 26,600
No of Equity Shares offered in offer for sale
SHKSL
Azhar Dhanani
Sadiya Dhanani
Sanya Dhanani
TPL
AAJVIT
MPL
Total No of Equity Share 3,22,16,981 Total No of Share offered
in sale 54,57,470

9. Competitors -
Source: The Economic Times

10. Financials -
o The company’s business has recovered to 84.2% of the pre-pandemic
level. It however, suffered a Rs 100-crore loss during the period.
o Barbeque-Nation Hospitality continued to report losses since FY18,
though revenue has been increased.

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KEY FINANCIAL RATIOS OF BARBEQUE NATION HOSPITALITY (in Rs. Cr.) Mar-21 Mar-20 Mar-19 Mar-18
Net Profit Margin (%) -18.12 -3.88 -5.19 -0.98
Return on Capital Employed (%) -3.81 4.97 9.73 12.96
Return on Assets (%) -7.95 -3.39 -4.68 -0.8
Total Debt/Equity (X) 0.5 116.31 4.14 3.14
Asset Turnover Ratio (%) 44.56 88.64 90.22 81.07
Current Ratio (X) 0.82 0.25 0.3 0.5
Quick Ratio (X) 0.77 0.19 0.21 0.39
Inventory Turnover Ratio (X) 25.16 56.75 38.34 30.89
Interest Coverage Ratios (%) -0.34 0.45 1.06 1.31
Barbeque Nation and competitors
Financial Ratios

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KEY FINANCIAL RATIOS OF JUBILANT
FOODWORKS (IN RS. CR.)
MAR 21 MAR 20 MAR 19 MAR 18 MAR 17
Net Profit Margin (%) 7.14 7.08 9.14 6.92 2.64
Return on Net worth / Equity (%) 15.60 23.28 24.38 19.77 7.89
Return on Capital Employed (%) 15.93 22.36 36.57 28.49 11.92
Return on Assets (%) 6.14 8.10 16.86 13.16 5.04
Total Debt/Equity (X) 0.00 0.00 0.00 0.00 0.00
Asset Turnover Ratio (%) 85.98 114.32 184.48 190.08 191.13
Current Ratio (X) 0.95 1.19 1.49 1.07 0.57
Quick Ratio (X) 0.80 1.06 1.36 0.94 0.43
Inventory Turnover Ratio (X) 25.05 42.15 48.27 47.62 43.36
Interest Coverage Ratio (%) 2.88 3.59 -- -- --

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KEY FINANCIAL RATIOS OF BURGER
KING INDIA (IN RS. CR.)
MAR
21
MAR
20
MAR
19
MAR
18
Net Profit Margin (%) -35.17 -9.10 -6.04 -21.74
Return on Net worth / Equity (%) -25.82 -27.80 -15.33 -28.63
Return on Capital Employed (%) -6.70 -0.65 1.15 -7.03
Return on Assets (%) -12.17 -6.39 -4.15 -11.25
Total Debt/Equity (X) 0.00 0.72 0.40 0.00
Asset Turnover Ratio (%) 34.62 70.23 68.74 51.77
Current Ratio (X) 2.19 0.51 0.38 1.26
Quick Ratio (X) 2.13 0.45 0.35 1.20
Inventory Turnover Ratio (X) 49.28 89.17 92.29 72.88
Interest Coverage Ratio -1.12 -0.17 - -

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Barbeque Nation
Financial
statements (5
years)

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25. Strengths / Strategies -
o Has built a steady network of 150 Barbeque Nation
restaurants in India and running six outlets in three
countries.
o The company doesn't follow a franchise mode.
o Barbeque Nation has always made sure that they don’t go
too over-board with their pricing.

26. o Barbeque Nation isn’t just limited to metro cities.
o Guest Satisfaction Index”, is visible to all team members,
regional managers, the CEO and the managing
directors.
o The company has strong business processes and back-
end systems that have been established over the past 14
years, leading to efficient operations.
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27. Risk Factors -
o COVID-19 has had a negative impact on the hospitality business.
o In a bid to drive growth, the company focused more on the delivery
business. In line with this, it launched UBQ by Barbeque Nation brand for
food delivery.
o Some promoters of the company are involved in SEBI proceedings in
relation to certain non-compliances.
o Deterioration in the performance of, or its relationships with, third-party
delivery aggregators (online restaurant aggregators).

28. Stock price
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Thank You