Fish fry Nation IPO: The initial public offering (IPO) of Fish fry-Nation Hospitality opened for subscription earlier within the day and can fair be on hand for subscription except Friday, March 26, 2021. The IPO has a model band of Rs 498-500 per fragment.
Ahead of its Rs 453 crore IPO, Fish fry Nation raised practically about Rs 203 crore (Rs 2,02,89,30,500.00) from 21 anchor investors in lieu of 40,57,861 equity shares at Rs 500 every, files from the stock exchanges confirmed.
The anchor investors encompass the likes of Goldman Sachs India, Constancy Investment Believe, ICICI Prudential Mutual Fund and HDFC Life Insurance Firm amongst others.
Fish fry-Nation Hospitality is a casual eating chain firm that is backed by private equity investor CX Partners and ace investor Rakesh Jhunjhunwala’s company Alchemy Capital.
The Fish fry Nation IPO comprises a novel enlighten of shares worth Rs 180 crore and a proposal-for-sale (OFS) of 54,57,470 equity shares. The proceeds of the enlighten will likely be utilised to fund the firm’s capital expenditure for growth and opening of as much as date restaurants, prepayment or repayment of obvious borrowings and for general company purposes.
The OFS route entails promoting of 10,18,288 shares by Sayaji Housekeeping Products and services (SHKSL), 3,39,430 shares by Azhar Dhanani, 3,39,430 shares by Sadiya Dhanani, 3,39,430 shares by Sanya Dhanani, 33,23,106 shares by Tamara Deepest Restricted (TPL), 71,186 shares by AAJV Investment Believe (AAJVIT) and 26,600 shares by Menu Deepest Restricted (MPL), the guidelines given on the red herring prospectus on hand on the National Stock Change (NSE) confirmed.
Merchants who love to subscribe to Fish fry Nation IPO can affirm within the lot of 30 equity shares and multiples thereof. On the upper model band, they'll absorb to shell out Rs 15,000 to earn a single lot of Fish fry-Nation Hospitality. The shares will likely be listed on both BSE and National Stock Change (NSE).
Fish fry Nation Hospitality had filed preliminary papers in February closing year, obtained Sebi’s approval in July 2020 to head with the trek the IPO.
As of December 2020, Fish fry Nation Hospitality operated 147 retailers across India and 6 retailers across three countries — UAE, Oman and Malaysia.
Axis Capital, IIFL Securities, Ambit Capital and SBI Capital Markets are the book running lead managers to the IPO while Link Intime India is the registrar of the enlighten.
A entire lot of the research teams at varied brokerages absorb now now not rated the enlighten nonetheless Prabhudas Lilladher in its IPO repeat has commended “Subscribe” to the supply. YES Securities alternatively has told fending off the IPO.
Prabhudas Lilladher in its IPO repeat said, “We put subscribe ranking to the IPO of Fish fry Nation (itemizing beneficial properties), one of the fastest rising Casual Dining Restaurant chain in India. The firm has several enhance levers such 1) Great scope of growth given low penetration 2) Expansion of Offer trade which has already grown from 3 per cent of Revenues pre covid to 15 per cent of Revenues in Nov20. 3) Steady model proposition with arena of interest positioning in high enhance casual eating segment. Harmful working capital and Rs3.3bn funding (at the side of pre IPO) bodes effectively for a turnaround and proper enhance with an estimated 20 restaurant addition/year.”
It extra noted that, “Alternatively itsy-bitsy scalability of international operations (6 stores) and now now not so spectacular music story of promoter crew in scaling up Sayaji Hotels (loss in 5 out of closing 10 years), promoter pledge (Rs246mn), insolvency complaints and OFS by promoters in IPO (2.03mn shares), merit caution. We predict about the firm is valued cheaply at 1.4x FY23 EV/Gross sales nonetheless the stock at ~46xFY23EPS supplies minute upside. Though we seek files from cheap itemizing beneficial properties given IPO euphoria within the markets, the operational supply desires to reinforce a great deal for any vital re-ranking within the lengthy whisk.”
YES Securities in its IPO repeat stated, “Firm is focusing on a market cap of Rs 18.8bn publish-enlighten which equates to 12.2x FY20 EV/EBITDA and a pair of.2x P/S, which is a great deal lesser than QSR mates love Westlife and Burger King. However given the extremely capital intensive and more unstable dine-in trade model, we are looking ahead to about the gash worth is justified. Furthermore, given the hot pre-IPO piece in December and January used to be achieved at 50 per cent much less than IPO model and COVID concerns absorb again attain encourage which will be a approach term headwind for the space, the pricing appears on the elevated side with now now not rather a lot left on the table for investors. We furthermore repeat that earlier fund raises in 2018 absorb been achieved at a grand elevated model, nevertheless fundamentals absorb deteriorated since. With out reference to a solid enhance outlook for the space (18 per cent anticipated trade CAGR) and solid model equity for the firm which must soundless support market fragment beneficial properties, we would checklist fending off the IPO and attempting out forward to better entry alternatives publish itemizing.”
