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| Edited By: Shailaja Sharma |Source: DNA |Updated: Mar 17, 2018, 02:35 AM IST
Jubilant FoodWorks Ltd, the exclusive franchisee for Domino’s Pizza chain in India, on Thursday fixed the price band of Rs 135-145 per equity share for its initial public offering (IPO).
The company is looking at offering 22,670,477 equity shares of face value of Rs 10 each aggregating Rs 329 crore at the upper end and Rs 308 crore at the lower end of the price band. The issue opens on January 18 and closes on January 20.
“Through the IPO, we aim to raise between Rs 308 crore and Rs 329 crore, and Rs 35-40 crore from this will be used to clear off some debt,” Ajay Kaul, chief executive officer, Jubilant FoodWorks Ltd, said.
Kotak Mahindra Capital Company is the sole book-running lead manager for the offer, which comprises a fresh issue of 4,000,000 equity shares, and an offer for sale of 18,670,447 equity shares by the India Private Equity Fund (Mauritius) and Indocean Pizza Holding Ltd.
Jubilant has recently renewed its contract with Domino’s International for another 15 years, during which Domino’s International expects Jubilant to open a minimum of 300 new outlets.
The company currently operates over 280 Domino’s Pizza outlets across 59 cities in the country. It also has five outlets through sub-franchisee in Sri Lanka and is looking at establishing presence in Nepal and Bangladesh.
Jubilant opened 60 stores in FY09 and plans to open 65-70 stores in FY10, of which 33 stores have already been opened as of November 2009. The company is also looking at opening stores at Mumbai and Delhi airports and corporate campuses.
Kaul said that food price pressure has been there for sometime.
“We took a price increase of 4-5% two years ago,” he said. The company in November 2009 took a price increase of 2.5% across its menu.
