Jubilant Foodworks Ltd sets IPO price band

    Jubilant Foodworks Ltd sets IPO price band

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    The Indian chain . is all set to enter into the capital market and raise up to Rs 3.29 billion (USD72.4 million) through its initial share sale on January 18, 2010. The company has set its IPO price band between Rs 135 to 145 per share.

    The issue will close on January 20, 2010. Jubilant Foodworks, which runs the chain, said in a statement it will use the funds to prepay term loans and for other general corporate purposes.

    The offer comprises a fresh issue of 4 million shares by the issuer and an offer for sale of more than 18.67 million shares by the India (Mauritius) and .

    Dominos operates around 274 stores in India and about five 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.

    — IndiaRetailing Bureau