Monday, 8 February 2010 at 16:27, Bloomberg
Jubilant FoodWorks Ltd, the Indian franchisee of Domino’s Pizza Inc, rose as much as 43.4 per cent in its Mumbai trading debut.
The shares gained 41 per cent to 204.35 rupees at 2:04 pm local time after rising as high as 207.9 rupees. Jubilant’s initial public offer price was 145 rupees. The sale received demand for about 31 times the shares on offer last month.
Jubilant, which operates 296 Domino’s pizza-delivery stores in 65 cities of India, sold 22.7 million shares, including 4 million new shares and 18.7 million shares offered by The India Private Equity Fund (Mauritius) and Indocean Pizza Holding Ltd.
“The company got 580m rupees ($12.4m) from the IPO, part of which will be used to repay debt and rest for day-to-day work,” Chief Executive Officer Ajay Kaul said at the listing ceremony in Mumbai today.
Jubilant plans to open 65 new stores in the current financial year ending March 31 and plans to expand at the same pace next year, Kaul said. The company, based in the New Delhi suburb of Noida, is talking with other international food chains to bring them to India, Kaul said without naming any.
“Only 12 per cent of the Indian food market is organized and opportunities to grow are huge,” he said.
Jubilant, one of the fastest-growing franchisees for Domino’s in world, reported a profit of 225.7m rupees on sales of 3 billion rupees for the nine months ended December 31, the company said in statement to the Bombay Stock Exchange on February 5.
The company may post a profit of 320 million rupees on sales of 4.2bn rupees this fiscal year, Kaul said.
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