The initial public offering (IPO) of restaurant chain operator Speciality Restaurants continued to see poor response from investors. The IPO got bids for 1.88 lakh shares by 16:00 IST on day two today, 17 May 2012. The issue was subscribed just 2%. The company is offering 1.17 crore in the price band of Rs 146 to Rs 155 per share. The IPO closes on Friday, 18 May 2012.

On Tuesday, 15 May 2012, Speciality Restaurant raised Rs 26.41 crore by issuing 17.60 lakh shares at Rs 150 per share to five anchor investors.

The major portion of proceeds of the IPO (around Rs 131.60 crore) is proposed to be utilized for opening of 45 new restaurants over the next three years. Of this, Rs 92.27 crore is planned to be spent towards interior and equipment costs. In addition, Rs 15.1 crore is proposed to be utilised for the development of food plaza in Rajarhat, kolkata, West Bengal.

Speciality Restaurants is the owner of restaurant brands like Mainland China, Flame & Grill, Machaan, Oh! Calcutta, Sigree and Haka.

For the nine months ended December 2011, revenues stood at Rs 149.70 crore with OPM of 20.9%. PAT was Rs 15.02 crore for the same period.