The 22,670,447 equity shares IPO of Jubilant FoodWorks, Domino’s business operator in India, opened for subscription. The company is going to raise up to Rs 328.72 crore and the price band is at Rs 135-145 per share. The offer will close on January 20, 2010.Hem Securities IPO Valuation of Jubilant Foodworks IPO:
The company is bringing the issue at a price band of Rs 135-145 per share which will turn into P/E multiple of 35.44-38.06 at post issue EPS of Rs 3.81 (Basis PAT annualized for 6 months ending Sept’09). The company with its massive expansion plans has shown strong financial performance for 6 months ending Sept’09 but huge accumulated losses is a major cause of concern for company. Hence high risk apetite investor can buy IPO of this pizza maker.
