New Delhi, Sept. 29 -- EverBrands India Ltd, the Everstone Group-controlled master franchisee of Subway restaurants in India, has filed a draft red herring prospectus for an initial public offering to raise up to Rs 600 crore ($62.5 million).

The offering consists entirely of a fresh issue of shares and existing shareholders, including Everstone, Norwest Venture Partners and Playbook Partners, are not selling any stake. EverBrands may also consider a pre-IPO placement of up to Rs 120 crore, which would scale down the size of the fresh issue proportionally.

Private equity firm Everstone owns a tad less than a 58% stake in the company on a fully diluted basis, having first invested in 2022. Norwest, which joined the company's cap table in 2023, owns a 16.48% stake. Playbook Partners holds a 4.15% stake after investing Rs 105 crore in the company in December 2025.

The company, which was valued around Rs 2,529 crore when it last raised funding in January this year, plans to use the IPO proceeds mainly to open new stores and clear debt. It will allocate Rs 326.85 crore to launch company-owned Subway outlets in FY28 and FY29, and Rs 125 crore to prepay subsidiary loans, which account for about 84% of its total borrowings. The remaining funds-capped at 25%-will go toward general corporate needs.

EverBrands operates its Subway business in India through its subsidiary, Culinary Brands India Pvt Ltd (CBIPL). Additionally, it manages Lavazza Coffee and F&H Coffee while distributing Dilmah Tea across the country via Fresh and Honest Cafe Pvt Ltd. The company's Subway outlet network comprises both company-owned, company-operated (COCO) and franchisee-owned, franchisee-operated (FOFO) locations.

EverBrands acquired the exclusive master franchise rights for Subway across India, Sri Lanka, and Bangladesh in late 2021. As of March 31, 2026, it operated 1,008 Subway locations in India, comprising 678 company-owned stores and 330 franchisee-operated units, alongside eight international outlets in Sri Lanka.

This represents a significant shift from the prior fiscal year, when the domestic store mix stood at 434 company-run and 455 franchised locations, driven in part by Rs 70 crore spent acquiring franchisee-owned units in FY26. Its master franchise agreement with Subway runs through December 2031, with an option to extend for ten years.

The company's total revenue grew 34.9% to Rs 966.17 crore in FY26, from Rs 716.06 crore in FY25. Earnings before interest, tax, depreciation, and amortization (EBITDA) reached Rs 98 crore, or roughly 10% of revenue, tapering to Rs 29 crore after deducting store lease cash rents. Consolidated net loss widened to Rs 58 crore in FY26 from Rs 28 crore in FY25, driven by capital expenditure on company-owned store conversions, while operating cash flow remained positive at Rs 94 crore.

The company highlighted developmental mandates under its Subway agreements as a key operational risk, requiring its network to expand to more than 2,500 outlets across South Asia by 2031.

Motilal Oswal Investment Advisors, ICICI Securities, and Nuvama Wealth Management are the book-running lead managers to the IPO.

Published by HT Digital Content Services with permission from VC Circle.