EverBrands India files IPO to fund Subway
EverBrands India has filed for a Rs 600 crore IPO, planning to use over half the proceeds to open 460 new company-owned Subway stores and repay debt.
EverBrands India has filed its draft red herring prospectus with SEBI for an initial public offering. The proposed IPO comprises a fresh issue of equity shares worth up to Rs 600 crore.
Funds will be used for capital expenditure to set up new Subway stores under the company-owned, company-operated (COCO) format and for debt repayment. Specifically, Rs 326.85 crore is allocated for store expansion, while Rs 125 crore is for the repayment or prepayment of borrowings. The remaining proceeds are earmarked for general corporate purposes. EverBrands India stated, "The proceeds from the fresh issue are proposed to be deployed through its wholly owned subsidiary, Culinary Brands India Private Limited (CBIPL)."
Business model and market position
EverBrands operates a multi-brand food and beverages platform across quick service restaurants and beverages. Its QSR vertical holds exclusive master franchisee rights for Subway restaurants across India, Sri Lanka, and Bangladesh. Subway is the second-largest QSR chain globally and the third-largest in India by store count.
The company's beverages business includes exclusive brand partnerships for Lavazza coffee and Dilmah tea in India. It also operates its owned brand, Fresh & Honest. This dual-vertical strategy positions EverBrands across major F&B categories.
Store network and financial performance
As of March 31, 2026, EverBrands operated 1,008 Subway stores across India. Of these, 678 were COCO stores and 330 were franchise-owned, franchise-operated (FOFO) stores. The company also operated eight FOFO stores in Sri Lanka. The COCO network in India has expanded rapidly, growing from 311 stores in FY24 to 678 in FY26.
Financial performance has shown strong growth across both verticals over the last three fiscal years.
| Vertical | FY24 Revenue (Rs crore) | FY25 Revenue (Rs crore) | FY26 Revenue (Rs crore) |
|---|---|---|---|
| QSR | 355.31 | 480.38 | 693.09 |
| Beverages | 172.16 | 206.36 | 240.57 |
Consolidated revenue from operations reached Rs 966.17 crore in FY26, up from Rs 716.06 crore in FY25. In the beverages vertical, the installed coffee machine base stood at 9,455 machines as of March 31, 2026.
Market opportunity and allocation details
The IPO filing comes as the company aims to capitalize on India's growing food services market. This market was valued at Rs 5,613 billion in FY25 and is projected to reach Rs 9,088 billion by FY30, implying a compound annual growth rate of 10.1%. The organised segment, where EverBrands operates, is expected to grow faster at a 13.5% CAGR, reaching Rs 5,273 billion by FY30 from Rs 2,798 billion in FY25.
The core of the expansion plan involves using Rs 326.85 crore from the IPO to set up 460 new Subway COCO stores in FY28 and FY29. The book running lead managers to the issue are Motilal Oswal Investment Advisors Limited, ICICI Securities Limited, and Nuvama Wealth Management Limited. The IPO proceeds will be used to set up 460 new Subway COCO stores in India by FY28 and FY29.
