The ₹700-crore IPO of Barbeque Nation, the Bengaluru-based restaurant chain operator, has been put on hold by markets regulator SEBI.

The restaurant chain is backed by private equity firm CX Partners and is promoted by Kayum Dhanani and family.

SEBI cited “pending regulatory action for past violations” for its action. The regulator has not clarified if the violation was committed by the company or entities related to it.

The IPO was to comprise fresh issue of shares worth up to ₹200 crore, besides an offer for sale (OFS) of up to 61.79 lakh shares by the promoters. The proceeds were proposed to be used for the chain’s expansion and the repayment of its loans.

Barbeque Nation’s IPO could have been the first by a restaurant chain in more than five years. SAIF Partners-backed Speciality Restaurants, which runs 62 food & beverages outlets in India, including popular brands such as Mainland China, Oh! Calcutta and Sweet Bengal, went public in May 2012. Other listed peers include Domino’s Pizza India licensee Jubilant Foodworks and McDonalds India licensee Hardcastle Restaurants.

IIFL Holdings, Edelweiss Financial Services, Jefferies India and SBI Capital Markets were appointed to manage Barbeque Nation’s IPO.

The restaurant chain was founded in 2006 and had 81 outlets across the country as on March 31, 2017, according to the DRHP.

Barbeque Nation has one restaurant in Dubai and has also granted franchise rights for one of its restaurants. It offers cuisines including Mediterranean, American, Asian and Indian, and also allows customers a hand in cooking their own food through its ‘Do-It-Yourself’ concept. The casual-dining chain is an associate firm of Mumbai-listed hospitality firm Sayaji Hotels Ltd.

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