Barbeque-Nation Hospitality Acquires Additional 4.14% Stake in Red Apple Kitchen

Barbeque-Nation Hospitality Limited, one of the leading casual dining chains in India announced the acquisition of an additional 4.14% stake in its subsidiary, Red Apple Kitchen Consultancy Private Limited yesterday. This acquisition was approved by the Board of Directors and involved the purchase of 270 equity shares, each with a face value of Rs.100, at a total consideration of Rs.10,01,82,690.

Shareholding Impact

Prior to this acquisition, Barbeque-Nation held an 82.43% stake in Red Apple Kitchen. The new acquisition increases their stake to 86.57%, upgrading their control over the subsidiary. The acquisition of 270 shares at Rs.3,71,047 per share reflects a financial commitment to consolidating their market position.

Red Apple Kitchen Overview

Red Apple Kitchen Consultancy Private Limited, incorporated on May 2, 2005, operates primarily in the food services and restaurant industry which is well-known for its restaurant brand, Toscano, in India. The company’s activities include establishing and managing restaurants, providing kitchen solutions, and offering consulting services to hotels and restaurants.

Financial Performance

Red Apple Kitchen has demonstrated good financial growth for FY24 as  it reported a turnover of Rs.1,081.35 million, a 18.73% increase from Rs.910.80 million in FY23, and a remarkable 131.36% rise from Rs.466.29 million in FY22. The net worth of the company as of March 31, 2024, stood at Rs.478.91 million. The company’s authorized capital is Rs.7,00,000, while its paid-up capital is Rs.6,52,900.

Rationale

The acquisition aligns with Barbeque-Nation’s strategy to increase its stake in its subsidiary, thereby consolidating its presence in the food services sector. The business operations of Red Apple are in line with Barbeque-Nation’s core activities, making this a well-thought out move to strengthen their market position. The acquisition was executed through a cash transaction, with the entire process expected to be completed by August 31, 2024. 

Conclusion: In conclusion, Barbeque-Nation’s acquisition of an additional stake in Red Apple Kitchen Consultancy reflects its intent to get control and leverage synergies within its subsidiary’s operations. This step not only strengthens their market position but also aligns with their long-term objectives in the food services industry. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.