Wednesday, January 13, 2010

Jubilant Foodworks IPO - Analysis, Recommendation and Review

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Jubilant Foodworks has come out with an IPO of 22,670,447 equity shares of Rs 10 each. The IPO opens on January 18, 2010 and closes on January 20, 2010. Jubilant Foodworks runs the popular pizza brand - Dominos in India. Dominos operates around 274 stores in India and about 5 outlets in Sri Lanka. They have recently renewed their contract with master franchise controller Dominos International. The new contract is for 15 years, it gives them exclusive rights for operations in India, Nepal, Sri Lanka and Bangladesh. The contract also says that Dominos will open 25 stores in 2011 and 2012.

The company’s net sales for FY09 were at about Rs 280 crore and the profit after tax (PAT) was Rs 6.74 crore. They have already opened some 33 stores this fiscal year. They are also exploring the possibility of opening outlets through sub-leasing at airports in Mumbai and Delhi.

The offer comprises a net offer to the public of 20,403,403 equity shares and a reservation of 2,267,044 equity shares for subscription by eligible employees, at the offer price. The offer shall constitute 35.63% of the post-offer share capital of the company. The promoters' shareholding will be reduced to 62.19% post issue.

The price band of the issue is fixed between Rs 135 and Rs 145.

The book running lead manager to the issue is Kotak Mahindra Capital Company Ltd and Link Intime India Pvt Ltd is the registrar.

Watch out this blog for more details on subscription, allotment and listing!
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