After weak debut, Indian F&B chain Barbeque-Nation shares jump 18%
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April 7, 2021
Shares of restaurant chain Barbeque-Nation Hospitality recovered early losses to rise 18% in their debut trading on Wednesday, helped by a rally in broader Indian markets on the central bank’s decision to stand pat on key interest rates.
The Bengaluru-based casual dining restaurant chain, which offers unlimited barbecue buffets, raised about 4.53 billion rupees ($61.62 million) through an initial public offering (IPO).
Shares of Barbeque-Nation, which also operates the high-end Toscano eatery chain, opened at 489.85 rupees, below the offer price of 500 rupees. The stock recovered to trade up 17.6% after dropping as much as 3.6% in the early session.
Nifty Midcap 100 index rose 0.9 per cent and Nifty Smallcap 100 index rose 1.7 per cent.
The Indian equity benchmarks extended gains in noon deals led by gains in rate sensitive banking, auto and financial services shares after the Reserve Bank of India kept repo rate unchanged at 4 per cent and maintained its accommodative stance. The benchmarks opened higher and extended gains after RBI s monetary policy decision. The Sensex rose as much as 699 points and Nifty 50 index climbed above its important psychological level of 14,850.
As of 1:17 pm, the Sensex was up 668 points or 1.36 per cent to 49,867 and Nifty 50 index rose 190 points or 1.29 per cent to 14,873.
Cabinet approves solar and white goods PLI scheme The union cabinet has approved the Production Linked Incentive (PLI) scheme for White Goods (Air Conditioners and LED Lights) with a budgetary outlay of Rs 6,238 crore. Addressing a press conference after the cabinet meeting, Union Minister of Commerce & Industry Piyush Goyal on Wednesday said the decision will add 10,000 Mega Watt capacity of integrated solar PV manufacturing plants, adding the PLI schemes will give a big push to India s manufacturing sector.
Oyo denies seeking bankruptcy
Oyo Hotels founder Ritesh Agarwal took to Twitter to reject reports the lodging and vacation home rental startup has filed for bankruptcy after a supplier’s Rs 16 lakh claim. The entrepreneur tweeted Wednesday his company had initially disputed an unidentified supplier’s claim for Rs 16 lakh, but eventually paid “under protest.”
Shares of Barbeque-Nation Hospitality staged a smart comeback after a weak market debut and were locked in the upper circuit of 20 per cent at Rs 590.40 on the BSE in Wednesday s session. The stock of Barbeque Nation Hospitality, which owns and operates the popular chain of Barbeque Nation Restaurants, had opened at Rs 492, 1.6 per cent lower against its issue price of Rs 500 per share on the BSE. On the National Stock Exchange (NSE), the stock was frozen in the 20 per cent limit at Rs 587.80, after opening at Rs 489.85. Till 11:21 am, a combined 6.23 million equity shares had changing hands on the counter, while there were pending buy orders for 870,000 shares on the NSE and BSE.
The domestic equity markets welcomed RBI governor Shaktikanta Das decision to keep repo rate unchanged at 4 per cent during the first bi-monthly monetary policy of FY22, along with holding the GDP growth rate steady at 10.5 per cent for new financial year. Despite the recent surge in Covid-19 cases, the governor said the central bank and the government are prepared to tackle the second wave of coronavirus. That apart, the Governor announced ‘Secondary market G-sec acquisition programme , wherein the RBI will commit upfront to a specific amount of open market purchases of government securities thus anchoring the yields and ensuring comfortable liquidity conditions. Guidance on the quantum of G-Sec purchases (Rs 1 trillion in Q1FY22) offered comfort to debt market participants on the backdrop of a huge supply calendar.