Jubilant Foodworks Ltd IPO Message Board (Page 12)

hi dsg

forget abt listing gain this stock will list below issue price definitely and close day at 18% below issue price.stay away

expected grey market prem on jub foodworks

ALIBHOY SAKAR BAZAR WALE

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Jubilant Foodworks, the exclusive franchisee for Domino's Pizza chain in India, plans to use the funds to prepay term loans and for other general corporate purposes. The company currently operates over 280 Domino's Pizza outlets across 59 cities in the country. It also has five outlets through sub-franchisee in Sri Lanka and is looking at establishing presence in Nepal and Bangladesh.

The company has shown very sharp growth for the half year ended September 2009. Its net sales stood at Rs 182.47 crore for the half-year ended September 2009 whereas the company had recorded the sales of Rs 280.16 crore for the year ended March 2009 (FY 2009). The margin has also improved to 16.1% compared to 12.5% in FY 2009. The company's net profit for the six months ended September 2009 is Rs 12.10 crore compared to Rs 6.74 crore for FY 2009. At the issue price of Rs 135-145, on the EPS of Rs 1.1 for FY 2009, the PE works out to 123 to 132 times.

The brokerage house(MICROSEC) has recommended a `SUBSCRIBE` to the issue for the purpose of listing gains. It also however notes that the issue is a bit expensive as compared to its peers. The valuations and justification provided by the brokerage house are as under:

At the upper price band of Rs 145, Jubilant is priced at 34.8x times of its FY2010 diluted annualized Earnings per Share (EPS) of Rs 4.16. However, based on FY09 diluted EPS, it is at a P/E of 125 x at the upper price band. Other global players like Domino`s, Papa John`s and Mcdonald`s are quoting at FY 2010E P/E of roughly 12-14x and at a 3-year average P/E of 13-18x

TC,I am thinking of giving the IPO a miss.Better issues are available wat about you.BTW did u apply for infinite

HI MR. SRIDHAR,
where did you get the information that retail portion subscribded only 9.84 times at cut-off, what about cheque bounces & stop payment post ipo closure. REPLY

hi all

stay away from this ipo.this ipo is priced very expensive at 120 p/e .this ipo should not have been priced above 40 rs anyway.

Also indiaprivate equity fund bought it at less than 30 rs so The PE firms are exiting the firm, which operates Domino’s Pizza chain in India, making 5x returns

imagine infinite issuing at 9 p/e and jubiliant issuing at 120 p/e whereas growth in profits was much higher for infinite.
use ur brain and dont get carried with the premium as it it will list below issue price

good company then my RPOWER

Mr Toshniwal,
Please sell and be happy.
No risk, only profit.
Bird in hand.
Don't worry even if the price goes up.
Nobody knows what the future holds plus he must also be left with something on the table.
Get me his address/telephone.
I will be interested to give two demat ids.

JP MORGAN,IPEF TO EXIT IN JUBILANT WITH 5X PROFITS

The PE firms are exiting the firm, which operates Domino’s Pizza chain in India, making 5x returns.

JP Morgan and India Private Equity Fund (IPEF), a joint venture between Chase Capital Partners and Oppenhiemer, who together hold 31% stake in Jubilant Foodworks, are exiting their decade-old investment with returns in the region of 5x. Jubilant Foodworks, the master franchisee that operates Domino’s Pizza chain in India, is coming with its IPO that would provide an exit route to the PE firms besides raising around Rs 55 crore for the company.

The issue (involving equity dilution of 35%) has been priced in the bracket of Rs 135-145/share. At the lower end of the price band, the company will be valued at Rs 860 crore ($180 million).

One of the few IPOs necessitated by the desire to exit by the existing PE investors will raise over Rs 306 crore, a major portion of which will be encashed by the PE investors. The IPO will make it the first restaurant chain in the country to be traded publicly. The firm had been, reportedly, looking to sell the stake but has not been able to find a buyer at the valuation it was seeking. So, it decided to go ahead with the public float.

As per VCCircle calculations, the two financial investors are hoping to pocket 4x ‘net’ return for their 10-year-old investment of around Rs 53.2 crore ($11.6 million) that was spread over three tranches (1999, 2001 and 2003). Both investors could pocket over Rs 250 crore together against the estimated investment of Rs 53.2 crore. IPEF accounts for around two thirds of the total money invested by the two financial investors.

Jubilant Foodworks is coming up with a proposed issue with 22.67 million shares comprising fresh issue of 4 million shares and offer for sale by IPEF and Indocean Pizza Holdings (JP Morgan investment entity) cumulating to 18.67 million shares. Kotak Mahindra Capital is managing the issue.

The Delhi-based Bhartias owns close to 67% stake in the company that operates 274 Domino’s Pizza fast food outlets in 55 cities the country and is looking to prepay loans worth Rs 35 crore (out of total Rs 83.6 crore). It is the master franchisee of Domino’s Pizza in India until December 31, 2024.

Domino’s Pizza competes with Pizza Hut and Papa John’s in the pizza space and McDonald’s and KFC in organised fast-food market in India. For the year ended March’09, it had net sales of Rs 280 crore with net profit of Rs 6.7 crore. For the quarter ended June’09, it had revenues of Rs 85.5 crore with net profit of Rs 4.1 crore.

There have been a slew of PE deals in the limited organised restaurant and fast food chain business in India. IHC had acquired Mars Restaurants and SkyGourmet Catering and SAIF Partners had picked up 20% stake in Mainland China.

Malaysian private equity firm Navis Capital has been looking to partially exit from Delhi-based restaurant chain Nirula’s for over a year now, but the transaction has been delayed due to a similar issue of big difference over valuation

Reliance Communication rose 2.30% to Rs 187 at 9:08 IST on reports the company has got the market regulator's nod for an initial public offering of its tower unit Reliance Infratel.

Reliance Infratel had filed with the Securities and Exchange Board of India for the IPO, which could raise up to $1 billion for a 10% stake

dont go on rumar or future market conds and poor financials of DOMINO PIZZA aplly as much as you can,although there is no any listed peers but some what it can be compared with pantaloons which also has same kind or less profit margin. FY10 EPS will be around rs.4 and in next two years it could be rs.10 so it can esily support 200 after few days of listing.

Mr. Radhe, It is not possible. Never apply in jubliant foodworks ipo becoz it will list at discount of Rs. 20- Rs. 25. It is a loss giving company and can never give positive returns to u. Remember My words AVOID THIS IPO.

don't apply this IPO

Domino's Grey Market Rate 95-98 Kostak 8000

dear friends,
in Jubilant just check the past results. FY 09 net profit is just below 7 crores and sales are around 280 crores. company valued at more than 900 crores. present issue constitute 35% post issue. EPS around Rs. 1.5 so on the ground reality issue is expensive extra ordinairy. be aware and watch for corrections in the market it will available at much lower price.

Domino's Grey Market rate is 43-48 Kostak - 3500

Please highlight the good points of this IPO which on first gance is having paltry eps of 1 for last 3 years.