EverBrands India Seeks ₹600 Crore Through IPO to Fuel Expansion
The operator of Subway restaurants in India, EverBrands India, is gearing up for an initial public offering (IPO) aimed at raising ₹600 crore, marking a significant step in its growth strategy.
Funding Allocation and Growth Plans
According to the Draft Red Herring Prospectus (DRHP), EverBrands plans to allocate ₹125 crore of the IPO proceeds to repay or pre-pay borrowings of its wholly-owned subsidiary, Culinary Brands India. The bulk of the funds, approximately ₹326.85 crore, is earmarked for establishing new Subway stores under the company-owned-company-operated (COCO) format. The remaining amount will be utilized for general corporate purposes, which could include marketing, operational enhancements, or other strategic initiatives.
EverBrands: A Multi-Brand Food Platform
EverBrands India, previously known as Culinary Brands Pvt Ltd, operates a diverse portfolio that includes not only Subway but also Lavazza, Dilmah, and its own Fresh & Honest brand. This multi-brand strategy positions the company well within the competitive quick service restaurant (QSR) sector, where it holds master franchisee rights for Subway across India, Sri Lanka, and Bangladesh.
Current Operations and Financial Performance
As of March 31, 2026, EverBrands operated 1,008 Subway stores in India, comprising 678 COCO stores and 330 franchise-owned-franchise-operated (FOFO) outlets, along with 8 FOFO stores in Sri Lanka. The company has demonstrated robust growth, with revenue from its QSR segment rising to ₹693.09 crore in FY26, up from ₹480.38 crore in FY25 and ₹355.31 crore in FY24. Its beverages segment also showed impressive growth, with revenues increasing to ₹240.57 crore in FY26 from ₹206.36 crore in FY25.
Market Position and Future Outlook
With the growing demand for quick service restaurants in India, EverBrands is well-positioned to capitalize on market opportunities. The planned expansion through the IPO could enhance its market presence and operational capabilities, potentially leading to increased revenue streams. The involvement of prominent book-running lead managers, including Motilal Oswal Investment Advisors, ICICI Securities, and Nuvama Wealth Management, adds credibility to the offering and may attract investor interest.
Key Highlights
- EverBrands India aims to raise ₹600 crore through its IPO.
- ₹125 crore will be used to repay subsidiary borrowings.
- ₹326.85 crore will fund new Subway store openings.
- The company operates over 1,000 Subway stores across India and Sri Lanka.
- Revenue from the QSR segment increased significantly in FY26.
Investor Note: EverBrands India’s IPO presents an opportunity for investors to engage with a growing player in the QSR sector. The company’s strategic plans for expansion and debt management could enhance its market position, making it a noteworthy consideration for those looking to invest in the food and beverage industry.
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