Shares of Speciality Restaurants settled at Rs 160.65 on BSE, a 7.1% premium over initial public offer price of Rs 150 per share.
The equilibrium price of Speciality Restaurants during the one-hour auction in pre-open session was set at Rs 153, a premium of 2% to the initial public offer (IPO) price of Rs 150.
In light of high volatility and price movement observed on first day of trading, market regulator Securities & Exchange Board of India (Sebi) had vide its circular dated 20 January 2012 put in place a framework of trade controls for IPO and re-listed scrips. Price bands for issue size up to Rs 250 crore for the first day in the normal trading session will be 5% of the equilibrium price. Additionally, the trading shall take place in trade to trade segment for first 10 days from commencement of trading. For issue size greater than Rs 250 crore, the applicable price bands for the first day are fixed at 20% of the equilibrium price.
On BSE, 7.66 lakh shares were traded on the counter. The stock closed at the day's high. It hit an intraday low of Rs 152.90.
The IPO of restaurant chain operator Speciality Restaurants was subscribed 2.54 times. The IPO got bids for 2.53 crore shares. The company had set IPO price band of Rs 146 to Rs 155 per share. The IPO had remained open for bidding between 16 and 18 May 2012.
The qualified institutional buyers (QIB) portion was subscribed 4.68 times. The non-institutional investors category was subscribed 2.19 times. The retail individual investors (RII) category got a muted response. This category was subscribed 0.55 times.
On 15 May 2012, Speciality Restaurant raised Rs 26.41 crore by issuing 17.60 lakh shares at Rs 150 per share to five anchor investors.
The major portion of proceeds of the IPO (around Rs 131.60 crore) is proposed to be utilized for opening of 45 new restaurants over the next three years. Of this, Rs 92.27 crore is planned to be spent towards interior and equipment costs. In addition, Rs 15.1 crore is proposed to be utilised for the development of food plaza in Rajarhat, kolkata, West Bengal.
Speciality Restaurants is the owner of restaurant brands like Mainland China, Flame & Grill, Machaan, Oh! Calcutta, Sigree and Haka.
For the nine months ended December 2011, revenues stood at Rs 149.70 crore with OPM of 20.9%. PAT was Rs 15.02 crore for the same period.