Speciality Restaurants IPO opens tomorrow

Our Bureau Updated - November 15, 2017 at 02:13 PM.

Price band fixed at Rs 146-155

Speciality Restaurants plans to raise about Rs 171-181 crore through an initial public offering. The issue will open for subscription on May 16 and close on May 18.

Speciality Restaurants is the owner of restaurant brands such as Mainland China, Flame & Grill, Machaan and Oh!Calcutta among others.

The price band has been fixed between Rs 146 and Rs 155. With 1.17 crore shares on offer, the issue is likely to garner Rs 171 crore at the lower end and Rs 181 crore at the upper end of the price band.

The company plans to use the net proceeds of IPO for the development of new restaurants, development of a food plaza in Kolkata and partial repayment of debt.

New restaurants

About 80 per cent of the proceeds (Rs 131 crore) would be used for the development of 45 new restaurants. The company plans to open 16 new restaurants under its various brands — Mainland China, Flame & Grill, Sigree and Italian Café this fiscal.

The company also plans to open 32 new restaurants of Mainland China — the flagship restaurant brand — over the next three years in various markets. Mainland China contributes nearly 60 per cent to the company's revenue. The second biggest brand is Oh!Calcutta which has a 12 per cent share.

The total investment for developing the food plaza is Rs 17 crore, of which the company has already invested Rs 2 crore. The remaining Rs 15 crore would come from the IPO proceeds.

sneha.p@thehindu.co.in

Published on May 14, 2012 16:34