Jubilant FoodWorks,( Domino's Pizza ) runs Dominos operations in India, has set the issue price for its initial public offering (IPO) of 22,670,447 equity shares at Rs 135-145 per share, reports CNBC-TV18 quoting DowJonesWire.
The issue will open for subscription during January 18-20, 2010. The company is going to raise upto Rs 329 crore through this issue
The offer comprises a net offer to the public of 20,403,403 equity shares and a reservation of 2,267,044 equity shares for subscription by eligible employees, at the offer price. The offer shall constitute 35.63% of the post-offer share capital of the company. The promoters' shareholding will be reduced to 62.19% post issue.
Dominos operates around 274 stores in India and about 5 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