Speciality Restaurants plans IPO for expansion

Fine dining operator Speciality Restaurants has filed draft red herring prospectus with the market regulator SEBI for public issue of 11,739,415 equity shares of face value Rs 10 each.

It is a fine dining operator in India, with 62 restaurants and 11 confectionaries as of December 31, 2010, featuring certain well recognised brands in the Indian restaurant industry. It operates 35 restaurants under the two brands namely Mainland China and Oh! Calcutta. Company's other brands are Flame & Grill, Haka, Just Biryani, KIBBEH, Kix, Machaan, Sigree, Shack, as well as a confectionary brand, Sweet Bengal. The company proposes to utilise the issue proceeds for development of new corporate restaurants (with the cost of Rs 144.69 crore, which will be spent in FY12 & FY13); development of a food plaza (with Rs 15.1 crore); and repayment of a term loan facility of Rs 10.43 crore. Promoters Anjan Chatterjee and Suchhanda Chatterjee will reduce their stake in the company to 60.69% post issue. For the period of six months ended on September 30, 2010, it has reported net profit of Rs 9.27 crore on total income of Rs 82.22 crore. Kotak Mahindra Capital Company Limited is the book running lead manager to the issue.