Jubilant Foodworks ends with 58% premium

At Rs 229 on the BSE

Shares of Jubilant Foodworks closed at Rs 229 on the BSE, a premium of 57.9% over the initial public issue price of Rs 145 per share.

The stock debuted at Rs 161.60, a premium of 161.60% over the initial public issue price. On BSE, 3.17 crore shares were traded on the counter. The stock hit a high of Rs 241.95 and a low of Rs 161.60.

At the closing price of Rs 229, the stock discounts the year ended March consolidated EPS of Rs 1.1 by a PE multiple of 208.18.

The initial public offer (IPO) of fast-food chain Jubilant Foodworks closed on 20 January 2010, with an oversubscription of 31.11 times. While the institutional investors subscribed 9.89 times the shares on offer, retail investors took only 24% of their allotment.

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.

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.