Subway operator EverBrands DRHP: Rs 600 cr fresh issue
A master franchisee of a global QSR brand goes to market. Rs 600 crore fresh issue, no offer for sale, and Rs 326.85 crore of it earmarked for company-operated Subway stores.
- The issue is a fresh issue of up to Rs 600 crore with no offer for sale, so no existing shareholder sells. A pre-IPO placement of up to Rs 120 crore would reduce it.
- FY26 revenue grew 34.9% to Rs 966.17 crore. Loss widened to Rs 58.19 crore from Rs 28.26 crore while EBITDA rose to Rs 98.13 crore from Rs 64.21 crore.
- Subway runs 678 COCO and 330 FOFO stores in India plus eight FOFO stores in Sri Lanka, and the QSR segment is nearly 72% of operating revenue.
- Rs 326.85 crore of proceeds is capital expenditure for new COCO stores, not franchised ones. No price band and no issue dates have been announced.
EverBrands India, which operates Subway in India, has filed its draft red herring prospectus with the Securities and Exchange Board of India. The issue is a fresh issue of equity shares of up to Rs 600 crore with no offer for sale, so no existing shareholder is selling into it. The company may also do a pre-IPO placement of up to Rs 120 crore, which would cut the fresh issue by that amount. Entrackr reported the filing on 29 September 2026.
The portfolio is wider than one brand. Subway runs through Culinary Brands India Pvt Ltd. Lavazza Coffee and F&H Coffee are managed, and Dilmah Tea distributed, through Fresh and Honest Cafe Pvt Ltd. Subway stores operate in both company-owned company-operated and franchisee-owned franchisee-operated formats. As of FY26 there were 678 COCO and 330 FOFO stores in India, 1,008 by our addition, plus eight FOFO stores in Sri Lanka.
FY26 revenue grew 34.9% to Rs 966.17 crore from Rs 716.06 crore. The QSR segment, which includes Subway, contributed Rs 693.09 crore, which Entrackr puts at nearly 72% of operating revenue. Our arithmetic makes that 71.7% and leaves Rs 273.08 crore from everything else. Loss widened to Rs 58.19 crore from Rs 28.26 crore, more than double. EBITDA was Rs 98.13 crore against Rs 64.21 crore.
Positive EBITDA of Rs 98.13 crore next to a Rs 58.19 crore loss is the pair to sit with in a store-heavy business. The gap lives in depreciation, amortisation, lease charges and finance costs, and the source breaks none of them out. Read it as unexplained.
Use of proceeds says what the company thinks it is buying. Rs 125 crore repays borrowings. Rs 326.85 crore is capital expenditure for new Subway stores under the COCO format, not franchised ones. The rest, Rs 148.15 crore by our subtraction, goes to general corporate purposes and shrinks if the placement happens. Motilal Oswal, ICICI Securities and Nuvama are book-running lead managers, MUFG is registrar, and BSE and NSE are proposed.
EverBrands Ventures Pte Ltd holds 57.78% on a fully diluted basis, Norwest Capital LLC 16.48%. Earlier this year the company raised $15 million led by Playbook Partners, reportedly for about 5% at around Rs 2,600 crore to Rs 2,800 crore. Entrackr carries that valuation as a report, not a filing. This is a draft, with no price band and no date.
Zane’s analysis draws on original reporting by Entrackr. Read the original report.