On Monday, Sebi, the regulatory body for capital markets, imposed a fine of Rs 1 crore on Mysore Amalgamated Coffee Estates for their involvement in aiding and abetting Coffee Day Enterprises in the diversion of funds worth Rs 3,535 crore.
Sebi has ordered Mysore Amalgamated Coffee Estates to pay the fine of Rs 1 crore within 45 days. This directive was included in an order issued by Sebi on the matter.
According to Sebi's order, both Mysore Amalgamated Coffee Estates Ltd (MACEL) and Coffee Day Enterprises Ltd (CDEL) are controlled by the same group of individuals, which includes Late VG Siddhartha and his family members.
Sebi has stated that MACEL, which was a pass-through entity, aided and abetted Siddhartha in diverting funds worth Rs 3,535 crore from CDEL's subsidiaries to MACEL and then to entities controlled by Siddhartha and his relatives. Sebi has found this to be a violation of the SEBI Act and the PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) Regulations.
Sebi has noted that the diversion of funds was never disclosed to the investors until the death of VG Siddhartha. As a result, Sebi has imposed a fine of Rs 1 crore on Mysore Amalgamated Coffee Estates Ltd (MACEL), which was referred to as "Noticee 1" in the order.
In July 2019, VG Siddhartha, who was the Chairman of the Coffee Day Group, allegedly committed suicide.
He reportedly left a suicide note addressed to the board of directors and Coffee Day family, in which he disclosed that he was heavily in debt. Following Siddhartha's death, the board of directors of Coffee Day Enterprises Ltd (CDEL) appointed Ashok Kumar Malhotra, a retired DIG of the Central Bureau of Investigation, and Agastya Legal LLP in September 2019 to conduct an investigation into the company's financial statements and its subsidiaries.
Sebi had launched its own investigation to determine if there was a violation of regulatory norms due to funds being diverted to related entities from April 2018 to March 2020.
In January, Sebi imposed a penalty of Rs 26 crore on Coffee Day Enterprises, the parent company of Cafe Coffee Day, for diverting funds from its subsidiaries to a firm connected to its promoters.
Barbeque Nation has refiled fresh Draft Red Herring Prospectus (DRHP) with SEBI for its Initial Public Offer (IPO). Through IPO, the casual dining restaurant chain plans to raise an estimated Rs 1,000-1,200 crore.
The IPO will comprise a fresh issue of shares worth Rs 275 crore and an offer-for-sale of up to 98,22,947 equity shares. The Bengaluru-based company may consider a pre-IPO placement to the tune of Rs 150 crore.
Barbeque Nation will use the proceeds to repay an outstanding borrowing of Rs 205 crore in part or full and for general corporate purposes.
The Book Running Lead Managers to the issue are IIFL Securities, Axis Capital, Ambit Capital and SBI Capital Markets.
In 2017, the restaurant chain filed IPO papers with SEBI seeking to raise Rs 700 crore, however, the regulator kept the processing of the company's proposed IPO in abeyance "pending regulatory action for past violations" and finally approved the IPO plan in January 2018. Although, Barbeque Nation could not launch the initial share-sale due to adverse market conditions.
Barbeque Nation Hospitality, which owns and operates Barbeque Nation Restaurants, is promoted by Sayaji Hotels, Sayaji Housekeeping Services, Kayum Dhanani, Raoof Dhanani and Suchitra Dhanani. It is backed by private equity firm CX Partners, which made its first investment in 2013 and again in 2015.
Presently, Barbeque Nation operates 138 outlets across India and 7 outlets in the UAE, Oman and Malaysia.
Barbeque Nation’s Eat-All-You-Can Buffet
Barbeque Nation is famous for its eat-all-you-can buffet. The buffet showcases an array of vegetarian and non-vegetarian spreads.
For starters, the restaurant offers non-vegetarian delicacies like Mutton Kadhak Seekh, Chilli Garlic Prawns, Ajwaini Fish Tikka, Murg Boti Kebab, etc. For vegetarians, the restaurant provides mouth-watering Hariyali Kumbh, Pineapple Chaat, Cajun Spice Baby Potato and Punjabi Paneer Tikka, among others.
The restaurant’s main course includes non-vegetarian dishes like Chicken Dum Biryani, Kashmiri Mutton Rogon Josh and Murgh Makhani, and vegetarian ones including Paneer Tikka Masala, Kashmiri Pulao, Dal-E-Dum, and Mushroom Ka Josh.
Its dessert section consists of Walnut Brownie, Assorted Pastry, Angoori Gulab Jamun, Marvel Cake, and Kesari Phirnee. The restaurant’s popular Kulfi Nation counter also offers a wide range of Kulfis.
The Securities and Exchange Board of India (SEBI) has given approval to Burger King India Ltd, the national master franchisee of the American burger brand in India, to float its initial public offering (IPO).
Burger King’s total IPO size is estimated at Rs 1,000 crore. The proposed IPO will be involving private equity firm Everstone selling a quarter of its shares and the burger chain issuing fresh shares worth Rs 400 crore.
The QSR chain will utilize Rs 290 crore out of the fresh net proceeds to launch new company-owned restaurants and part of the money for general corporate purposes. Currently, it has 216 restaurants and eight sub-franchised restaurants across India.
Burger King had filed its documents for the proposed IPO in November 2019.
Everstone is poised to make neat returns from the partial exit. The company, through its investment vehicle QSR Asia Pte Ltd, owns a 99.39% stake in Burger King India.
In 2014, Everstone had formed a rare investment unit to build and operate a brand from scratch in India. Despite investing in a bunch of restaurant chains, Everstone didn’t succeed in making money from all of its bets. However, the firm is looking to more than makeup with Burger King. It has proposed to sell 60 million shares, or nearly a fourth of its stake.
Footprint of Burger King
The brand is owned by Burger King Corporation, a subsidiary of Restaurant Brands International Inc, in the US. Restaurant Brands International Inc holds a portfolio of fast-food brands that also include Popeyes and Tim Hortons.
Globally, Burger King is the second-largest burger brand as measured by the total number of restaurants. The chain has a global network of more than 18,000 restaurants in over 100 countries and US territories at the end of June 30, 2019.
Burger King India will be valued at Rs 3,065 crore, based on the estimated issue size. The brand’s listed peers Westlife Development, the master franchisee for McDonald’s in western and South India, is valued at Rs 6,751 crore, while Jubilant Foodworks Ltd, the franchise for Domino’s, is valued at Rs 24,063 crore.
Business Growth
Burger King’s loss narrowed to Rs 38.55 crore for the year through March 2019 from Rs 81.47 crore the year before. Its revenue from operations jumped to Rs 632.73 crore from Rs 378.12 crore.
The burger chain’s loss for the three months ended June 2019 was Rs 2.14 crore on revenue of Rs 212.27 crore. Its same-store sales growth, a key measure of operating performance, was 12.23% and 29.21% in 2017-18 and 2018-19, respectively.
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Emirati business tycoon Rashid Al-Habtoor has expressed interest in buying the Leela Group of Hotels in India with an equity infusion of about USD 600 million (about INR 4,200 crore). The offer has been made in a letter addressed to Finance Minister Arun Jaitley and the hotel. Leelaventure has hotels in Mumbai, Delhi, Chennai, Gurugram and Bengaluru. It currently has a debt of about INR 3,000 crore. |
Markets regulator Sebi's has given go-ahead to float an initial public offering to Capricorn Food Products India Ltd, an integrated food processing company.
The company had filed IPO papers with Securities and Exchange Board of India (Sebi) in February and obtained its "observations" on April 12, latest update with the regulator showed.
Sebi's observation is necessary for any company planning to launch public issue like initial public offer (IPO), follow-on public offer (FPO) and rights issue.
With this, the total number of companies receiving approval from the capital markets regulator has reached 13 so far this year.
Going by the draft papers, Capricorn Food's IPO comprises fresh issuance of equity shares worth Rs 171 crore and an offer for sale of up to 76.43 lakh scrips by the existing shareholders.
Proceeds of the issue will be utilised towards repayment of certain indebtedness of the company; investment in its subsidiary Gonglu for repayment of certain borrowings availed by it; and general corporate purposes.
IIFL Holdings, ICICI Securities, and IDFC Bank will manage the company's public issue. The equity shares are proposed to be listed on the BSE and NSE.
Established in 1998, Capricorn Food is a food processing company with both export and domestic operations. It serves clients across North America, Europe, Asia-Pacific, Africa and the Middle East.
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