BBQ Nation Defies Grey Market; Ends 17% Higher on Debut


By Aditya Raghunath — Barbeque-Nation Hospitality Ltd (NS:) might have had a weak listing on the stock market today at Rs 492, 1.6% lower than its issue price of Rs 500 but the stock ended strong, gaining 17.4% at Rs 587.8. The Rakesh-Jhunjhunwala stock was expected to have a below-par first day after its GMP (grey market premium) fell to Rs 10-Rs 12 this week, after trading at Rs 40 last week.

While the lockdown in Maharashtra is severe and will cause a dent in the business, it is important to keep in mind that BBQ Nation has 147 restaurants across 77 cities in India and six international restaurants in three countries apart from India.

However, recent financials of the company leave a lot to be desired. BBQ Nation’s losses have continuously been widening. For FY20, it had a consolidated loss at Rs 32.93 crore on revenue of Rs 846.97 crore. For FY19, it lost 38.4 crores on revenue of Rs 739 crore. In FY18 it lost Rs 5.8 crore on revenue of Rs 586.3 crore. For the eight months ended November 2020, the company reported a loss of Rs 100.65 crore on revenue of Rs 201 crore. The situation is not expected to change much until the second wave of the pandemic subsides or vaccination drive kicks into overdrive.


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