Bodhi Tree, backed by James Murdoch, is in advanced talks to buy a stake in A2B at ₹3,000-3,500 crore. The deal includes structured debt from Bain Capital and a mix of primary and secondary capital.
Bodhi Tree, the investment platform backed by James Murdoch's Lupa Systems and JioStar vice-chairman Uday Shankar, is in advanced talks to buy a stake in the southern India restaurant chain Adyar Ananda Bhavan (A2B). The deal values the company at ₹3,000-3,500 crore, three people with direct knowledge of the matter said.
“The deal discussions that went cold more than a year ago has been restarted. Bodhi Tree is doing the deal,” one of the persons said.
Bodhi Tree is likely creating a special purpose vehicle to finance the transaction, the person added. The firm plans to raise structured debt from Bain Capital’s special situations fund and fund the equity portion from its own capital, according to another person.
The deal structure combines a primary infusion of fresh capital and a secondary sale of shares from existing promoters. “This is going to be a mix of primary and secondary fund infusion into the company,” the third person said. The Chennai-based chain plans to use the funds to expand into new geographies within India and abroad.
A2B, founded in the 1980s by K.S. Thirupathi Raj, runs more than 140 outlets across India and has a global presence. The business is now managed by his sons, K.T. Venkatesan and K.T. Srinivasa Raja. In FY25, the company reported revenue of ₹1,487.5 crore, up from ₹1,392.7 crore a year earlier. Net profit slipped to ₹36.2 crore from ₹39.1 crore in FY24, according to documents sourced by Tofler from the ministry of corporate affairs.
Veda Corporate Advisors is advising A2B’s promoters, while Moelis is advising BodhiTree Systems. Moelis, A2B, Veda, BodhiTree and Bain Capital did not respond to requests for comment.
The deal comes as investor interest in India’s restaurant and quick-service restaurant space picks up. India’s $80 billion food services market is expected to grow at a 10-11% compound annual rate through 2030, driven by the expansion of organised players, the Mint article noted.
Several transactions have closed in recent months. Last week, Mint reported that global private equity firm Invus Group is exploring a ₹500 crore minority stake in Bengaluru-based Popo Ventures, which operates Pizza Bakery, Paris Panini and The Smash Guys. In the same week, Inspira Global completed the acquisition of Restaurant Brands Asia Ltd (RBA), the operator of Burger King in India and Burger King and Popeyes in Indonesia. RBA carries an Alpha Score of 37/100 from AlphaScala, rated Mixed, in the Industrials sector.
In April, Siguler Guff invested $40 million in Trimex Foods, the Indian franchise partner for Chili's, PAUL and Cinnabon. In March, Burma Burma raised ₹38 crore from existing and new investors. Burger Singh closed an ₹82 crore round led by Artal Asia.
Listed player Sapphire Foods India is preparing to merge with Devyani International in a nearly $1 billion deal. Devyani also plans to acquire Biryani By Kilo, while Wow! Momo raised capital from Singularity in December. Restaurant Brands International (QSR), the parent company of Burger King globally, has an Alpha Score of 49/100, also rated Mixed, in the Consumer Discretionary sector.
The proposed Bodhi Tree investment includes a clause that would allow the investor to fully acquire A2B over time, with promoters continuing to work alongside for a few years, the second person said.
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