Speciality Restaurants fixes price band of Rs 146-155 per equity share for maiden IPO

NEW DELHI: Fine dining food services chain Speciality Restaurants, which operates multiple cuisine restaurants such as Mainland China, Oh! Calcutta and Just Biryani, is debuting with its maiden initial public offering ( IPO) at the price band of Rs 146- Rs 155 per equity share, a statement issued by the company said.

The restaurant chain’s IPO will debut two days later, on May 16, with 2012, with an offer of 11,739,415 equity shares of face value of Rs 10 each. The issue will constitute 25% of the post-issue paid-up equity share capital, the company said.

The issue, which will close on May 18, will accept bids for a minimum of 40 equity shares and in multiples of 40 equity shares thereafter. The company said it may consider participation by anchor investors, and that the anchor investor bid should be made one working day before the issue opening date.

The issue is being made through the book building process where only 50% will be allocated on a proportionate basis to Qualified Institutional Buyers (QIB), the company said.

The issue is being managed by Kotak Mahindra Capital.

The privately-held restaurant chain, promoted by entrepreneur Anjan Chatterjee, kicked off operations in 1991 with the restaurant Only Fish in Mumbai. Since then, it has expanded its operations across cuisines. Apart from its flagship restaurants Mainland China and Oh! Calcutta, Speciality Restaurants operates brands like Sigree, Machaan and Mostly Kababs.

Besides expanding within the fast-growing food services sector, the chain is nursing ambitions to expand its overseas footprint in markets like Dubai, Sri Lanka and London.

Speciality Restaurants will be the second food services company to go public; the first one being Jubilant FoodWorks, which operates the Domino's Pizza chain in India. The organised segment of the restaurant industry is estimated at Rs 7,000-8500 crore, clocking a rapid 20-25% growth annually.