By ipomarket.in Editorial Team · Last reviewed: 2026-09-29
Disclaimer: This article is for informational purposes only and does not constitute investment advice. IPO investments are subject to market risks. Please read the offer document carefully and consult a SEBI-registered investment advisor before investing.
EverBrands India, the company that operates the Subway sandwich chain in India, has filed its Draft Red Herring Prospectus (DRHP) with SEBI on 29 September 2026. A DRHP is the preliminary offer document a company submits before an IPO; it is not the final prospectus and does not mean the issue has regulatory clearance yet. The proposed offer is a fresh issue of shares worth ₹600 crore, with no offer for sale (OFS) component. For an explainer on what a DRHP is and how to read one, see our guide on what a DRHP is and how to read it.
What EverBrands does
EverBrands runs Subway in India through its subsidiary Culinary Brands India Pvt Ltd (CBIPL). Beyond Subway, the group operates Lavazza Coffee and Fresh & Honest (F&H) Coffee, and distributes Dilmah Tea. In effect, it is positioning itself as a multi-brand food and beverage platform rather than a single-format quick-service restaurant (QSR) business.
As of 31 March 2026, the company reported 678 COCO Subway stores and 330 FOFO Subway stores in India, plus 8 FOFO stores in Sri Lanka. COCO stands for company-owned, company-operated, while FOFO means franchisee-owned, franchisee-operated. The distinction matters because COCO stores put both the capital cost and the operating risk on the company's own books.
The COCO network has expanded quickly: 311 stores in March 2024, 434 in March 2025, and 678 by March 2026. According to the filing, Subway was the second-largest QSR chain globally as of 31 December 2025, and the third-largest in India by store count as of 31 March 2026.
The offer structure
| Item | Detail |
|---|---|
| Issue type | Fresh issue only, no OFS |
| Issue size | ₹600 crore |
| Pre-IPO placement | Up to ₹120 crore (optional) |
| Listing | BSE and NSE |
| Lead managers | Motilal Oswal, ICICI Securities, Nuvama |
| Registrar | MUFG |
Since the entire issue is a fresh one, all the money raised goes to the company rather than to selling shareholders. A pre-IPO placement of up to ₹120 crore is optional; if it happens, the fresh issue size may be reduced accordingly.
How the money will be used
The DRHP earmarks the proceeds broadly as follows:
- ₹326.85 crore towards opening new COCO Subway stores
- ₹125 crore to repay debt at subsidiary Culinary Brands India
- The remainder (roughly ₹148 crore) for general corporate purposes
More than half of the fresh issue is committed to company-owned store expansion. That makes the return on this capital heavily dependent on the unit economics of each new store and the company's ability to execute a large rollout without diluting quality.
Financials: strong top line, widening losses
| Metric | FY26 | FY25 | FY24 |
|---|---|---|---|
| Total revenue | ₹966.17 cr | ₹716.06 cr | — |
| QSR revenue | ₹693.09 cr | ₹480.38 cr | ₹355.31 cr |
| Beverages revenue | ₹240.57 cr | ₹206.36 cr | ₹172.16 cr |
| EBITDA | ₹98.13 cr | ₹64.21 cr | — |
| Net loss | ₹58.19 cr | ₹28.26 cr | — |
Total revenue grew about 34.9% year on year in FY26. EBITDA also improved. But the net loss widened from ₹28.26 crore in FY25 to ₹58.19 crore in FY26. The gap between positive EBITDA and a growing net loss usually points to costs below the operating line, such as new-store setup expenses, depreciation on a growing store base, and interest. Investors reading the RHP later should look closely at how these line items behave as stores mature. Our guide to analysing IPO financials from the RHP walks through this.
Ownership
Per the DRHP, the shareholding (on a fully diluted basis) includes EverBrands Ventures Pte Ltd at 57.78%, Norwest Capital LLC at 16.48%, Shivanand Shankar Mankekar HUF at 5.83%, and Playbook India Fund II at 4.15%.
Market backdrop
The filing cites India's food services market at an estimated ₹5,613 billion in FY25, projected to reach ₹9,088 billion by FY30. A large and growing market is a tailwind, but it also invites competition. Subway competes with a crowded field of established QSR and cafe chains in India, several of which are already listed or profitable.
What to weigh as a retail investor
Growth versus profitability. Revenue is compounding fast, but the bottom line is still in the red and the loss is getting bigger, not smaller. The core question is whether the aggressive COCO expansion converts into profits as stores season, or whether losses keep pace with growth.
Concentration of capital in COCO stores. With over ₹327 crore going into company-owned stores, execution risk is significant. If new stores underperform on footfalls or margins, the payback on this spending stretches out.
Early stage of the process. This is a DRHP, not an approved issue. SEBI typically takes weeks to months to issue observations, after which a company has up to a year to launch. The price band, lot size, valuation and final dates are not yet disclosed and will only come at the RHP stage.
Because the price band is unknown, no valuation view is possible yet. Any grey market premium (GMP) chatter at this stage would be speculative; understand what GMP is and its limits in our explainer on IPO GMP and how it works. You can track other names on our upcoming IPOs list for 2026.
FAQ
When is the EverBrands (Subway) IPO date?
The date is not yet confirmed. The company has only filed its DRHP with SEBI on 29 September 2026. SEBI observations and the final dates typically come weeks to months later, and the launch can take place any time within a year of clearance.
What is the price band and lot size?
Neither has been disclosed. The price band, lot size and price per share are set at the RHP stage, which comes after SEBI issues its observations. Treat any figure circulating before then as unverified.
Is this a fresh issue or an offer for sale?
According to the DRHP, it is entirely a fresh issue of ₹600 crore with no OFS. That means all proceeds go to the company. An optional pre-IPO placement of up to ₹120 crore may reduce the fresh issue size if it goes through.
Why is the company reporting losses despite strong revenue growth?
EverBrands posted positive EBITDA of ₹98.13 crore in FY26 but a net loss of ₹58.19 crore. The widening loss is consistent with heavy spending on new company-owned stores, depreciation and interest costs. The RHP will give more detail; read it carefully before forming a view.
Where will the shares list?
The DRHP states the shares are proposed to be listed on both the BSE and NSE.
Last reviewed: 2026-09-29. Figures are drawn from the DRHP and media reports and remain subject to SEBI observations and changes in the final RHP.