Jubilant FoodWorks, the sole franchise for Domino’s Pizza in India, has stated that its initial public offering (IPO) will hit the capital markets on January 18-20. The company has fixed the price band at Rs. 135-145 per share. It plans to sell 2.2 crore equity shares of Rs. 10 each for cash at a price to be exercised through a 100 per cent book-building process.
At the upper-end of the price band, it plans to raise Rs. 329 crore through the sale of shares.
The company plans to use part of the proceeds to repay around Rs. 35 crore of debt and for expansion. Jubilant has a debt of around Rs. 74 crore.
Addressing a press conference here on Friday, company CEO Ajay Kaul said it planned to create distribution channels at airports and railway stations and also roll out its system for taking orders online. He also said it would invest a part of the proceeds from its upcoming IPO for repayment of debt, besides undertaking expansion by opening 65-70 new outlets in the next fiscal.
“We are in discussions with various bodies for opening networks at airports and railway stations. We are keen to tap all the potential markets. All our outlets in Bangalore have web-ordering system and obviously it will soon lead to a national launch. Work is also on to create a back-end for mobile technology. We will open 65-70 new outlets in the next fiscal. Our focus is on venturing into newer markets, specially Tier-III cities,” Mr. Kaul said.
Jubilant is also exploring options to take the Domino’s brand to Bangladesh and expand it in Sri Lanka where it now has five outlets under a sub-franchise. He said the company expected to grow at a robust rate.
“The pizza market is only around two per cent of the Rs. 58,000-crore Indian food market. Our aim is to compete against local food outlets and increase the pizza market,” Mr. Kaul said.
