New Delhi-based Jubilant Foodworks is a food service company having exclusive franchisee to run the international Domino’s brand of pizza stores in India, Nepal, Sri Lanka and Bangladesh. It proposes an initial public offer for sale of 1.9 crore shares and a smaller fresh issue of 40 lakh shares to raise Rs 305-328 crore. Rs 54-58 crore would accrue to the company in lieu of issue of new shares, while remaining would go to the promoters.
The company plans to use a part o the proceeds (Rs 32 crore) for repayment of existing high cost debts and the balance for meeting general corporate expenses. The total issue represents around 35% of the post-issue of the company. While there are no listed peers of this company, an analysis of its business indicates that the issue appears to be priced on the higher side. More.