Adyar Ananda Bhavan to tap PE funds for $140 million: report

Chennai-based iconic quick-service restaurant chain Adyar Ananda Bhavan is planning to tap private equity (PE) funds to raise up to ₹1,200 crore (about $143 million) by diluting a 35% stake, The Economic Times reported, citing several people aware of the developments.

The restaurant chain, which is targeting a valuation of about ₹3,500 crore, is also aiming for an initial public offering (IPO) in the next five years, the report added.

Adyar Ananda Bhavan’s key rivals that specialize in serving South Indian delicacies include Saravana Bhavan, Sangeetha, and Sree Annapoorna.

Established in 1979, Adyar Ananda Bhavan has more than 150 outlets spread across Tamil Nadu, Karnataka, Telangana, and New Delhi, apart from 10 restaurants in the US, UK, and Australia.

For comparison, Saravana Bhavan has 30 outlets in India and 81 overseas, spread across 25 nations, while Sangeetha has over 30 restaurants in Chennai and 21 abroad, and Sree Annapoorna operates 19 outlets in Coimbatore.

Adyar Ananda Bhavan has hired advisory firm Veda Corporate Advisors to help with its fundraising efforts, ET reported, adding that with these funds, the restaurant chain wants to open up to 500 domestic outlets. The restaurant chain reportedly posted a revenue in fiscal 2024 of ₹1,500 crore, and an Ebitda (earning before interest, taxes, depreciation and amortization) of about ₹100 core .

In 2016, the Chennai-based restaurant chain had explored selling its controlling stake by tapping into private equity at ₹1,800 crore.