Indian restaurant chain Barbeque-Nation makes commercial debut

Adds details about IPO, background

BENGALURU, April 7 (Reuters)Barbeque-Nation Hospitality actions BARQ.NS fell 2% on its market debut on Wednesday, after the casual restaurant chain raised around 4.53 billion rupees ($ 61.62 million) in an initial public offering to the savings (IPO).

The business debuts come as a resurgence of coronavirus infections in India threatens to derail a nascent business recovery for restaurants, malls and cinemas.

Barbeque-Nation shares opened at 489.85 rupees, below the offer price of 500 rupees. The stock rallied to trade up 17.6% at 5:07 am GMT, after falling 3.6% at the start of the session.

While the offer was oversubscribed about six times in the last month, it is paltry compared to the interest generated by other announcements this year, including paint maker Indigo Paints Ltd. INDG.NS, which has been 50 times oversubscribed, and engineering firm MTAR Technologies Ltd MTAR.NS, which has been oversubscribed more than 100 times.

Barbeque-Nation recorded a net loss of 987.2 million rupees for the eight months ended November 2020, and an annual loss of 323.9 million for the fiscal year ended March 2020.

The restaurant chain, which has 138 outlets in India, has offered a new issue of 1.8 billion rupees and an offer to sell up to 5.5 million shares.

Fundraising via IPOs is at its highest level in 13 years in India due to an influx of overseas investment and unusual interest from family investors driving more listings, making of India one of the hottest IPO markets in 2021.

The Bangalore-headquartered company competes with listed companies such as specialty restaurants SPRE.NS in the restaurant segment, while some of its quick-service rivals are Westlife Development WEST.NS, Jubilant Foodworks JUBI.NS and Burger King India Ltd BURG.NS.

($ 1 = 73.5170 Indian rupees)

(Reporting by Chandini Monnappa, Anuron Kumar Mitra and Rama Venkat in Bengaluru, editing by Sherry Jacob-Phillips)

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