One of the top investor Rakesh Jhunjhunwala’s co-founded firm, Alchemy Capital Management, has recently invested Rs 80-90 crore in CX Partners-backed casual dining restaurant chain Barbeque Nation Hospitality Ltd before the IPO placement.
“Alchemy Capital has picked up a minority stake in Barbeque Nation through Alchemy India Fund for a consideration of around ₹80-90 crore. The pre-IPO placement valued the company at ₹2,300-2,400 crore”.
According to the reports, The capital will be used to build new restaurants and also for repayment of debt.
In 2013, CX Partners had invested in the restaurant chain, Alchemy Capital was set up in 1999. The first Barbeque-Nation restaurant was launched in 2005.
The company operated 81 restaurants across 42 cities in India and one in Dubai till 30 June 2017, In the previous fiscal, the restaurant chain reported revenue of ₹489.4 crore, ₹399.8 crore (2016-17). The company’s profit was at ₹15.8 crore, compared with ₹12.5 crore during the period under consideration, according to data from the company’s draft prospectus.
Barbeque Nation restaurant chain which is based in Bangalore, had filed for its draft IPO (initial public offering) papers with the Securities and Exchange Board of India (Sebi) in August 2017, expecting to raise Rs 700 crore through the offer.
Sebi approved the IPO in January. The pre-IPO placement valued the company at Rs 2,300-2,400 crore, as stated by two people aware of the development. The capital will be used to build new restaurants and for repayment of debt.
Barbeque Nation restaurant chain is promoted by several entities such as Sayaji Hotels, Sayaji Housekeeping Services Ltd and members of the Dhanani family.
The pre-IPO investment saw participation from Motilal Oswal and other prominent public markets investors such as New Horizon Investments, White Oak Capital and Madhusudan Kela.