Latest IPO in Market
1) Barbecue Nation's IPO will open on Wednesday (March 24). You can invest in it till Friday. The company has fixed a price band of Rs 498-500 per share for the issue.
Barbecue is a Bangalore-based company. It has outlets in many big cities. The company will issue fresh shares worth Rs 180 crore in this issue. The promoters of the company will sell 54 lakh shares under the offer for sale (OFS).
These include Sayaji Hotels, Sayaji Housekeeping Services, Qayam Dhanani, Rauf Dhanani, and Suchitra Dhanani. The Dhanani family holds a 47.8 percent stake in the company.
Barbecue Nation has also invested in CX Partners and Alchemy Capital, an investment firm of veteran investor Rakesh Jhunjhunwala. CX Partners holds a 28.87 percent stake in it. Alchemy has a 2.83 percent stake.
Rahul Agarwal, CEO of Barbecue Nation said, "We will use 75 crores from the IPO proceeds to pay off the debt. The remaining amount will be used for expansion of business and general needs of the company."
Barbecue Nation also owns Toscano Restaurants and UBAQ. She operates both. Barbecue Nation was started in Mumbai in 2006. It earned a revenue of Rs 850 crore in the financial year 2019-20.
It has 164 outlets in the country. It is one of the fastest growing food chains in the country. Since its inception, it has so far garnered an investment of around Rs 300 crore.
Due to the Corona epidemic, it was forced to close its three oulets. However, the company was able to cope with the difficult times by taking some steps such as a change in the menu.
Agarwal said delivery sales accounted for 3 percent of the company's total revenue before Corona. It rose to 15 percent in November last year.
2) Shares in the Craftsman Automation IPO will be allotted on Monday (March 22). The company has raised Rs 824 crore from the issue. The company's IPO was opened on 15 March.
It was closed on 17 March. The company had a price band of Rs 1,488–1,490 per share. It did not get much response from investors. It was subscribed 3.82 times.
Craftsman Automation is a company in Coimbatore. It is the largest company to make cylinder blocks and heads.
They are used in commercial vehicles, tractors, and construction equipment. It is among the top 3-4 companies making tractor parts. 70% of its revenue comes from the powertrain segment.
Two-thirds of the company's revenue comes from domestic auto companies and the rest from industrial customers.
Major customers of the company include Tata Motors, Daimler Commercial, Mahindra & Mahindra, TVS, Royal Enfield, and JCB. Diecasting aluminum for Dohapia vehicles also brings in good revenue.
The company's revenue has been between Rs 1,501-1,831 crore in the last three financial years, while its working profit increased by 16.4 percent to Rs 397 crore during FY 2017-18 to FY 2019-20. The company is coming out of many new segments while expanding.
In the first nine months of the financial year 2020-21, the company's revenue was Rs 1,022 crore and profit was Rs 50.66 crore. In the last four years, the company has spent Rs 800 crore capital, while it has a debt of Rs 890 crore.
0 Comments