Barbeque-Nation Hospitality’s stock dropped 2% on its first day on the market, after the casual dining restaurant chain raised $4.53 billion rupees ($61.62 million) via an IPO (IPO).
The debut of the stock comes as a revival of coronavirus infections in India threatens to derail a nascent recovery in the restaurant, mall, and movie theatre industry. Barbeque-stock Nation’s opened at 489.85 rupees, less than the 500 rupee bid price. After falling as low as 3.6 percent in the early session, the stock recovered to trade up 17.6 percent as of 0507 GMT.
While the offering was six times oversubscribed last month, it pales in comparison to the interest created by other listings this year, such as paint maker Indigo Paints Ltd, which was 50 times oversubscribed, and engineering firm MTAR Technologies Ltd, which was more than 100 times oversubscribed.
Barbeque-net Nation’s loss for the eight months ended November 2020 was 987.2 million rupees, with an annual loss of 323.9 million rupees for the year ended March 2020. The restaurant chain, which has 138 locations in India, reported a 1.8 billion rupee fresh issue as well as a selling offer of up to 5.5 million shares.
Due to a surge of overseas investments and unusual interest from mom-and-pop investors, IPO fundraising in India is at a 13-year high, making India one of the hottest IPO markets in 2021. In the dining segment, the Bengaluru-based company competes with listed peers such as Speciality Restaurants, while in the quick-service segment, Westlife Growth, Jubilant Foodworks, and Burger King India Ltd are some of its competitors.