The Rs 453 crore initial public offering (IPO) of causal dining restaurants chain Barbeque Nation Hospitality was subscribed 5.98 times on March 26, the final day of bidding. Investors have put in bids for 2.99 crore equity shares against the offered size of 49.99 lakh shares with retail investor leading.

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The reserved portion for retail investors has been subscribed 13.13 times and qualified institutional buyers (QIBs) 5.11 times. Meanwhile, non-institutional investors submitted the bid for 3.1 times of its reserved portion and the employees' part was bid 1.02 times. The company has reserved shares worth Rs 2 crore for its employees.

The issue size for the IPO has been reduced to 49.99 lakh equity shares from 90.71 lakh equity shares after the company raised Rs 203 crore from 15 anchor investors on March 23 ahead of the issue opening. The company had allocated 40.6 lakh equity shares at Rs 500 per share to the anchor investors.

Read here

: Barbeque Nation Hospitality IPO: Key things to know before investing

The IPO comprises a fresh issue of equity shares aggregating up to Rs 180 crore and an offer for sale of up to 54.5 lakh equity shares by existing selling shareholders.

Barbeque Nation Hospitality owns and operates Barbeque Nation Restaurants, one of India’s leading casual dining restaurant chains and International Barbeque Nation Restaurants.

The company will utilise the net proceeds from the issue for expansion and opening of new restaurants, prepayment or repayment of all or a portion of certain outstanding borrowings and general corporate purposes.

Read here: Barbeque Nation Hospitality IPO: Should you invest?

However, most brokerages are not very bullish on the issue due to consistent losses in previous years and also the impact of COVID-19 on the dine-in business. However, the company has shown a smart recovery of 84 percent of pre-COVID levels with an improving business outlook.

Still, they believe the long-term growth story for the company is intact but they are not confident about the listing.

First Published:Mar 26, 2021 2:37 PM IST