Dominos Pizza Franchisee Jubilant Rises 58% on Debut

According to Business Week, “Jubilant FoodWorks Ltd., the Indian franchisee of Domino’s Pizza Inc., rose 58 percent in its Mumbai trading debut today.”

“The shares climbed to 229.1 rupees at the close of trading in Mumbai compared with an initial public offer price of 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. ‘We rate Jubilant FoodWorks as an ideal play on the growing consumerism in India, with the rise in urbanization, middle-class numbers and income levels,’ said Nitin Khandkar, head of research at Keynote Capital Ltd. in Mumbai. ‘We expect profit growth to far outstrip revenue growth, as fixed overheads get absorbed faster with rise in sales per store.’ The company, which received 580 million rupees ($12.4 million) from the IPO, will use the money to repay debt and for daily operations, Chief Executive Officer Ajay Kaul said at the listing ceremony in Mumbai today.”