Jubilant IPO nets Rs329 crore with 22.67 million share sale

Jubilant Foodworks, the pizza delivery chain, listed on India's stock exchanges on Monday, saw its shares rise as much as 37 per cent within the first few minutes of trade.
 
Shares of the company, which runs the Dominos Pizza chain, opened at Rs164.15, higher than their Rs145 issue price and later traded between Rs161.60 and Rs198.50 in the first two hours of trading on the BSE.
 
The company announced a more than six fold jump in fiscal third-quarter net profit, half an hour before the market opened for trading.

The company said its net profit rose to Rs11.37 crore from Rs1.77 crore a year earlier, even as its total income rose to Rs117 crore from Rs7.80 crore. The company also projected a net profit of Rs32 crore on revenue of Rs415-420 crore for the current fiscal year to 31 March.

The company is benefiting from changing consumption patterns among young Indians who are spending increasing amounts on beverages and processed foods.

The company has a 65 per cent share of the organised segment of the market for home delivery of pizzas.
The IPO saw the company raise Rs329 crore through the issue of 22.67 million shares, which included a fresh issue of 4.0 million shares. The rest 18.67 million shares were sold by shareholders of India Private Equity Fund (Mauritius) and Indocean Pizza Holding Ltd.

In an interview with CNBC-TV18, Ajay Kaul, Jubilant's CEO, said the company saw a lot of scope for growth. He said that consumption of pizzas in India was quite low at only about 2 per cent of the overall food market. He added that the company was looking to expand the market by improving penetration and to that end, the company would increase the number of its stores aggressively.