Jubilant Foodworks IPO subscribed 3.46 times

Gets bids for 6.78 crore shares as against 1.96 crore shares on offer

The initial public offer (IPO) of fast-food chain Jubilant Foodworks was subscribed 3.46 as at 16:00 IST on the second day of the issue on Tuesday, 19 January 2010, National Stock Exchange data showed. The IPO received bids for 6.78 crore shares as against 1.96 crore shares on offer. The issue closes on 20 January 2010.

On 15 January 2010, Jubilant Foodworks said it received bids for 30.6 lakh shares at Rs 145 per share towards the anchor investor portion of the offer. The anchor investors to whom equity shares have been allocated pursuant to the offer include Arisaig Partners, Blackrock, Canara Robeco Mutual Fund, Fidelity, Franklin Templeton, HSBC, Reliance Mutual Fund, SBI Mutual Fund, T Rowe Price and Ward Ferry.

At the issue price of Rs 135-145, on the EPS of Rs 1.1 for FY 2009, the PE works out to 123 to 132 times. However, the PE based on annualized EPS of Rs 3.8 for the six months ended September 2009, works out to 35 to 38 times.

Jubilant Foodworks is offering 2.26 crore equity shares aggregating to approximately Rs 328.72 crore at upper end of the price band and Rs 306.05 crore at the lower end of the price band. The company has fixed an IPO price band of Rs 135-145 per share.

The public offering will include a fresh issue of 40 lakh shares and an offer for sale of more than 1.86 crore shares by India Private Equity Fund (Mauritius) and Indocean Pizza Holding.

Jubilant Foodworks, the exclusive franchisee for Domino's Pizza chain in India, plans to use the funds to prepay term loans and for other general corporate purposes.

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.

The company reported net profit of Rs 6.74 crore on net sales of Rs 280.61 crore in the half-year ended September 2009.