Jubilant FoodWorks Ltd will make investments ₹92 crore to purchase a 10.76% stake in Barbeque Nation Hospitality Ltd (BNHL), which runs the favored Barbeque Nation (BBQ) chain of eating places.
“The corporate will purchase 36,50,794 totally paid-up fairness shares of face worth of ₹5 every aggregating to 10.76% stake in BNHL,” Jubilant FoodWorks, which operates the Domino’s Pizza chain and the Dunkin’ Donuts espresso and doughnut chain in India, stated in a regulatory submitting on Thursday. The all-cash deal is predicted to conclude by 25 January, it stated.
The acquisition will supply Jubilant FoodWorks a bigger play in India’s organized meals providers market. Jubilant FoodWorks has been increasing its presence within the dining-out market, throughout cuisines and codecs. “We’re pleased to announce our funding in Barbeque Nation, a differentiated, informal eating restaurant model of scale with robust unit economics. We’re assured that the proposed funding will create worth for our shareholders,” based on a press release by Shyam S. Bhartia, chairman, and Hari S. Bhartia, co-chairman, Jubilant Foodworks.
Earlier this month, the corporate introduced the launch of a brand new restaurant chain promoting biryani beneath the Ekdum! model, capitalizing on the recognition of the rice-based dish. Biryani stays probably the most ordered dish throughout meals supply platforms Zomato and Swiggy. It is going to now additionally personal a share within the informal eating market via the funding in Barbeque Nation.
BNHL owns and operates 138 Barbeque Nation model of informal eating eating places that supply over-the-table barbeque dwell grills for diners in 73 cities throughout India, apart from seven eating places abroad. It additionally has a presence within the Italian delicacies phase beneath the model, Toscano. In accordance with newest out there knowledge, in fiscal 2019, BNHL posted a consolidated whole income of ₹742.5 crore and a internet lack of ₹38 crore.
Earlier this yr, BNHL acquired approval from the Securities and Trade Board of India (Sebi) for an preliminary public providing, PTI reported, citing draft papers filed with Sebi.
BNHL is promoted by Sayaji Lodges Ltd, Sayaji Housekeeping Companies, Kayum Dhanani, Raoof Dhanani, and Suchitra Dhanani. In November 2018, the meals providers firm additionally launched UBQ by Barbeque Nation, an à la carte Indian delicacies model within the worth phase, based on a draft prospectus filed by the corporate in February this yr.
The promoters of HT Media Ltd, which publishes Mint, and Jubilant FoodWorks are carefully associated. There are, nonetheless, no promoter cross-holdings.