Kolkatta based Speciality Restaurants Limited has informed the share market(BSE/NSE) that they have planning to enter capital markets with its maiden public issue of 11,739,415 equity shares of Rs 10 each constituting 25% of post-paid up capital of the company. The IPO size will be around Rs 200 crore. The company has filed a Draft Red Herring Prospectus (DRHP) with market regulator Securities and Exchange Board of India (SEBI) for the same. The premium to be decided via 100% book building process. The IPO price band has not been decided yet. Speciality Restaurants operates chain of fine dining restaurants in India. Company’s network comprises of 62 restaurants and 11 confectionaries located in 17 cities in India and one in Dhaka, Bangladesh. It owns and operates 45 restaurants (corporate restaurant) and 11 confectionaries and had franchise arrangements for the other 17 restaurants (franchise restaurants) which are owned by franchisees but operated by itself.
The proceeds of the IPO will be used to open 48 corporate restaurants during fiscal year 2012 and 2013 in Metro, Teir I and Teir II cities by investing Rs.144.68 Crore. Apart from this the company will use Rs.15.1 Crore to develop a food plaza in Rajarhat, Kolkata and will use Rs.10.43 Crore to part-repayment of outstanding term loan of Rs.12.93 Cr from SBI.
Promoters of the company – Anjan Chatterjee and Suchhanda Chatterjee launched the first restaurant network in 1992 under the name ‘Only Fish’, which was later renamed as ‘Oh! Calcutta’ in 1996. In 1994, they launched ‘Mainland China’ in Mumbai. Promoters will reduce their stake in the company to 60.69% post issue. For the period of six months ended on 30th September 2010, it has reported net profit of Rs 9.27 crore on total income of Rs 82.22 crore.
The Equity Shares are proposed to be listed on the Bombay Stock Exchange Limited (BSE) and the National Stock Exchange of India Limited (NSE).
The Sole Book running lead manager to the issue is Kotak Mahindra Capital Company Limited.
Registrar of the Issue : Karvy Conputershare Private Limited, Hyderabad.
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