PL Investment Banking, the investment banking and corporate advisory arm of the Prabhudas Lilladher Group, a financial services organisation, has raised ₹127.30 crore by issuing 60 lakh warrants, convertible into equity shares of Speciality Restaurants Limited, in a preferential issue.

Speciality Restaurants is one of the largest fine-dining restaurant chains in the country and operates restaurant brands such as Mainland China, Oh! Calcutta, Sigree Global Grill, Episode One, Haka, and confectionary Sweet Bengal. 

The company’s paid-up equity share capital will increase by 12.78 per cent on the conversion of warrants into equity shares, according to a press release.

PL Investment Banking was the exclusive financial advisor to Speciality Restaurants on this transaction.

“In the past few quarters, the company’s balance sheet quality has improved, as demonstrated by the significant improvement in ROCE, ROE, and EBITDA margins. It is also consistently generating cash, which makes it a viable investment opportunity. We are truly excited that we could play a role in the company’s growth story,” said Amisha Vora, Chairperson and MD, PL Group.

Currently, the restaurant chain has around 87 restaurants and 40 confectionary stores across 14 cities in India, two restaurants in the UAE, one in Qatar, and one in London under a joint venture.

According to the company, the proceeds from the preferential issue will be used to support the chain’s growth initiatives and to fund the upgradation of its restaurants. “This includes capital expenditure for the development of new restaurants, confectionaries, and commissaries in various cities across the country, and for general corporate purposes.”

“We are pleased to announce the successful execution of our preferential issue. With the completion of this issue, we have raised significant capital to pursue new business opportunities and continue to deliver value to all our shareholders,” said Anjan Chatterjee, Chairman and MD, Speciality Restaurants Limited.

The preferential issue is in accordance with the regulatory guidelines and has been approved by the Board of Directors and the shareholders of Speciality Restaurants.