Speciality Restaurants IPO Coming soon

Speciality Restaurants logoSpeciality Restaurants is the leading restaurant chain in India. They are running 62 restaurants and 11 confectioneries in India with different brand names. They are trying for an IPO of Rs 200 Cr. They are
going to issue 1,17,39,415 equity shares of Rs 10 each. They have filed a draft red hearing prospectus
with the market regulator SEBI. The fund will be used to increase the number of restaurants to 100
within 2011. About 40% stake is going to dilute. The issue will be through 100% book building process.

Company established in 1991. The main brand names by the company are Mainland China, Oh Calcutta,
Sigree, Machaan, Sweet Bengal, Flame & Grill, and Kibbeh etc. Mainland china serves 2 lakhs Chinese
meal per day. The company is also plans to establish restaurants in Dubai, Sri Lanka, and London. Big
expansion plans are prepared by the management. It is the second IPO from food industry, after jubilant
foodworks. Jubilant gave excellent returns to investors.

The size of Indian food industry is US$ 200 Billion. It is expected that the Indian food industry will be
valued US$ 300 Billion by 2015. In spite of the recession in 2008, Indian food industry remained strong.
People allocate more money for food expenditure. More spending is expected in the beverage foods. The
organized sector is the (16 to 20) % of the total food industry and growing at an annual rate (20 to 25)
%. Indian food industry is considered as a potential one. Many foreign players are coming to the market.
Strong competition is expecting in the coming years

Anjal Chatterjee and Suchhanda Chatterjee are the promoters of the company. They hold 99.89% stake
in the company .The management is very experienced in the Indian restaurant industry and they can lead
company to higher levels. . Their revenues are mainly from Mainland China. They had started their first
restaurant in 1992 in the name of ‘Only Fish’. Mainland China and Oh Calcutta are their core brands.
They won multiple awards in 2010. Their some restaurants are included in the list of finest restaurants
in Asia. ‘Mainland China’ is mainly focused on Chinese dishes. ‘Oh Calcutta’ is mainly focused in the
traditional eastern dishes. Sigree is for authentic Indian Cuisine. Flame & Grill is for kababs grilled in
the table. Kibbeh offers Lebanese Cuisine. They are planning to establish new brands attractive for the
different age groups. They have restaurants in the 17 cities in India and one in Dhaka. Two digit growth is
expected in the particular industry. Company can create good profit in the coming years. It is a very good
buying opportunity for long term investors.

 

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