FREE Equity Delivery and MF
Flat ₹20/trade Intra-day/F&O
|
Review By ARM Research Pvt. Ltd. on May 18, 2012
Total Issue of Shares (lk): 117.39
QIB Investors (lk): 58.69
Non -Institutional Investors (lk): 17.60
Retail Investors (lk): 41.10
Issue opens on: 16th May,2012
Issue closes on: 18th May,2012
Price Band (Rs.): 146-155
Lot size (No. of shares) and multiple 40
Face Value (Rs): 10
Issue Size (Rs in Cr.): 171.39 - 181.96
Equity Shares outstanding prior to the Issue: 35,218,242
Equity Shares outstanding after the Issue: 46,957,657
CRISIL has assigned an IPO Grade 4 to SRL IPO indicating company has 'Above Average Fundamentals'.
SRL is one of the a fine dining operator in India, with 69 restaurants and 13 confectionaries as of February 29, 2012, featuring certain well recognized brands in the Indian restaurant industry. It focuses on providing guests an affordable fine dining experience with quality food and service in a modern ambience. The Promoters launched the first restaurant of its restaurant network in 1992 under the name Only Fish, which was later renamed Oh! Calcutta in the year 1996. In 1994, Promoters launched the first Mainland China restaurant in Mumbai. Over the years, it has grown in 21 cities in India and one city in Bangladesh. In Fiscal Year 2011 and the nine months ended December 31, 2011, the number of guests served at its owned and operated restaurants was approximately 2.59 million and 2.09 million, or, on average over7,313 and 8,127 guests each day, respectively.
The restaurants consist of different restaurant concepts and are located across India, particularly in the western region. The flagship brand is Mainland China which serves Chinese cuisine in a standalone fine dining setting. Chinese cuisine is the most popular foreign cuisine in India according to the India Retail Report 2009.
As of February 29, 2012, its main brand Mainland China brand encompassed 36 restaurants across India as well as one in Bangladesh. The Mainland China restaurants contributed 53.27%, 57.03%, 60.28% and 61.13% to its total revenues from food and beverages in Fiscal Years 2009, 2010, 2011 and the nine months ended December 31, 2011, respectively.
The other core brand, Oh! Calcutta, encompassed seven restaurants across India as well as one in Bangladesh as of February 29, 2012 and features a range of cuisines from the east Indian city of Kolkata, including Bengali, Nawabi, British and Continental cuisines served in a fine dining setting.
The other restaurant brands are Sigree, Flame & Grill, Haka, Just Biryani, KIBBEH, Kix, Machaan, Shack, as well as a confectionary brand, Sweet Bengal.
However as the number of core brand Mainland China restaurants scale up revenue growth will be seen at a healthier pace and commercial property market which has seen fall in rentals could lead to further expansion on margins and result in increased scalability & profitability going forward.
We recommend only Long term Investors to "Subscribe" to the SRL IPO since the business model seems to be robust with the direct relation of the increase in restaurants to its revenue increase with maintained EBITDA and PAT margins over a future period will result into promising growth potential going forward.
Review By ARM Research Pvt. Ltd. on May 18, 2012
FREE Intraday Trading (Eq, F&O)
Flat ₹20 Per Trade in F&O
|