Shares of Barbeque-Nation Hospitality fell 2% of their market debut on Wednesday, after the informal eating restaurant chain raised about 4.53 billion rupees ($61.62 million) by an preliminary public providing (IPO).
The buying and selling debut comes as a resurgence in coronavirus infections in India threatens to derail a nascent restoration in enterprise for eating places, malls and film theaters.
Shares of Barbeque-Nation opened at 489.85 rupees, beneath the supply value of 500 rupees. Inventory recovered to commerce up 17.6%, as of 0507 GMT, after dropping as a lot as 3.6% in early session.
Whereas the providing was oversubscribed about six occasions final month, it pales as compared with the curiosity generated by another listings this yr together with paint maker Indigo Paints Ltd, which was 50 occasions oversubscribed, and engineering agency MTAR Applied sciences Ltd, which was oversubscribed greater than 100 occasions.
Barbeque-Nation had posted a web lack of 987.2 million rupees for the eight months ended November 2020, and an annual lack of 323.9 million for the yr ended March 2020.
The restaurant chain, which has 138 shops in India, supplied a contemporary concern of 1.eight billion rupees and a sale supply of as much as 5.5 million shares.
Fundraising through IPOs is at a 13-year excessive in India attributable to a flood of abroad investments and as uncommon curiosity from mom-and-pop traders spur extra listings, making India one of many hottest IPO markets in 2021.
The Bengaluru-headquartered firm competes with listed friends akin to Speciality Eating places within the eating phase, whereas a few of its quick-servicing rivals are Westlife Improvement, Jubilant Foodworks and Burger King India Ltd.