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EverBrands India, the operator of Subway in India, is preparing to tap the public markets with a proposed initial public offering (IPO). The company has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI), proposing a fresh issue of equity shares worth up to Rs 600 crore, with no offer for sale (OFS).
The company may also undertake a pre-IPO placement of up to Rs 120 crore. If the placement is completed, the amount raised through it will be adjusted against the fresh issue. EverBrands has proposed listing its equity shares on both the BSE and NSE.
Through Culinary Brands India Pvt Ltd (CBIPL), EverBrands operates Subway restaurants across India. Its portfolio also includes Lavazza Coffee and F&H Coffee, while Dilmah Tea is distributed in India through Fresh and Honest Cafe Pvt Ltd. The company operates Subway outlets through both company-owned, company-operated (COCO) and franchisee-owned, franchisee-operated (FOFO) models.
According to the DRHP, Motilal Oswal, ICICI Securities and Nuvama have been appointed as book-running lead managers, while MUFG will act as the registrar to the issue.
Of the IPO proceeds, EverBrands plans to allocate Rs 125 crore towards repayment of borrowings. A further Rs 326.85 crore is earmarked for capital expenditure, primarily for setting up new Subway stores under the COCO format. The remaining funds will be utilised for general corporate purposes.
EverBrands reported a 34.9% year-on-year increase in revenue to Rs 966.17 crore in FY26, compared with Rs 716.06 crore in FY25. Its QSR business, which includes Subway, contributed Rs 693.09 crore during the year. However, the company's loss widened to Rs 58.19 crore from Rs 28.26 crore in FY25. EBITDA increased to Rs 98.13 crore from Rs 64.21 crore during the same period.
As of FY26, EverBrands operated 678 COCO and 330 FOFO Subway stores in India, along with eight FOFO outlets in Sri Lanka. The Subway business contributed nearly 72% of EverBrands' total operating revenue during the fiscal year.
EverBrands Ventures Pte Ltd is the company's largest shareholder, holding a 57.78% stake on a fully diluted basis. It is followed by Norwest Capital LLC with 16.48%, Shivanand Shankar Mankekar HUF with 5.83% and Playbook India Fund II with 4.15%. Enrich Agro Food Products and Bikramjit Singh Kandhari each hold a 3.64% stake on a fully diluted basis.
Earlier this year, EverBrands raised $15 million in a funding round led by Playbook Partners. The transaction reportedly involved a 5% stake in Subway India's parent at a valuation of around Rs 2,600-2,800 crore.
The company has not yet announced the IPO price band or issue dates.
