Jubilant Foodworks Ltd will invest ₹ 92 crore to buy a 10.76% stake in Barbeque Nation Hospitality Ltd (BNHL), which runs the restaurant’s popular Barbeque Nation (BBQ) chain.
“The company will acquire 36,50,794 fully paid up equity shares of BN5 face value in BNHL.” , Said in a regulatory filing on Thursday. The all-cash deal is expected to conclude by January 25.
The acquisition will give Jubilant FoodWorks a big drama in India’s organized food services market. Jubilant FoodWorks is expanding its presence in the dining-out market, in cuisine and formats. “We are pleased to announce our investment in Barbeque Nation, a differentiated, casual dining restaurant brand of scale with strong unit economics. We are confident that the proposed investment will create value for our shareholders, ”Shyam S. Bharatiya, president, and Hari S. Bhartia, co-chairman, according to a statement from Jubilant FoodWorks.
Earlier this month, the company announced the launch of a new restaurant chain selling Biryani under Ekdoom! Tapping into the popularity of the brand, the rice-based dish. Biryani is the most ordered dish in the food delivery platforms Zomato and Swiggy. It will now also have a share in the casual food market through investment in Barbecue Nation.
BNHL owns and operates the 138 Barbecue Nation brand of casual dining restaurants that provide over-the-table barbeque live grills for diners in 73 cities across India, in addition to seven restaurants abroad. It also has a presence in the Italian cuisine section under the brand Toscano. As per the latest available data, in FY 2019, BNHL has consolidated total revenue available of 742.5 crores and. Posted a net loss of 38 crores.
Earlier this year, BNHL got approval for an initial public offering from the Securities and Exchange Board of India (SEBI), PTI reported, citing draft papers filed with Sebi.
BNHL is promoted by Sayaji Hotels Limited, Sayaji Housekeeping Services, Kayoom Dhanani, Ravo Dhanani and Suchitra Dhanani. According to the draft prospectus filed by the company in February this year, in November 2018, the food service company launched UBQ by Barbeque Nation, an a la carte Indian cuisine brand in the price segment.
The promoters of HT Media Ltd., which publishes Mint, and Jubilant Foodworks, are closely related. However, no promoter does cross-holding.
STAY TUNED WITH US FOR MORE INTERESTING CONTENT ONLY ON DESINEW.XYZ