Norwest Capital-backed Subway restaurants operator EverBrands India files DRHP for Rs 600-crore IPO

The latest market report highlights that Norwest Capital-backed EverBrands India, which operates Subway restaurants, Lavazza coffee and Dilmah tea, along with its own Fresh & Honest brand, has filed a draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to mobilize up to Rs 600 crore through an initial public offering (IPO).

The IPO will comprise entirely a fresh offering of shares, with no offer-for-sale (OFS) component, as per the DRHP filed on September 28.

The firm may consider a pre-IPO placement of up to Rs 120 crore before filing the red herring prospectus with the Registrar of Firms. If the pre-IPO placement is undertaken, the fresh offering size will be reduced by the amount boosted through the placement.

EverBrands India, promoted by Sameer Sain and Atul Kapur-owned Singapore-based Evergroup, holds exclusive master franchisee rights for Subway restaurants across India, Sri Lanka and Bangladesh. The firm operates the Subway business under its quick-service restaurant (QSR) vertical, while premium international brands Lavazza and Dilmah, along with its own Fresh & Honest coffee brand, are operated under its beverages vertical.

The firm proposes to use Rs 125 crore of the IPO proceeds to repay debt availed by its subsidiary, Culinary Brands India (CBIPL). The subsidiary had total outstanding borrowings of Rs 149.7 crore as of March 2026.

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A further Rs 326.85 crore will be used to set up new Subway stores under the firm-owned, firm-operated (COCO) format, while the remaining proceeds will be used for general corporate purposes.

EverBrands India, which claims to be the third-largest player by store count in India's large and fast-growing QSR segment, operated 1,008 Subway stores across India as of March 2026, of which 678 were COCO stores. The firm operates an asset-light model, with all its stores on a leasehold basis and using compact store formats.

The promoters hold 58.06 percent of EverBrands' pre-offering capital, while the remaining 41.94 percent is held by public shareholders, including Norwest Capital, with a 16.48 percent stake, and Playbook Partners India, with a 4.15 percent stake.

EverBrands India is loss-making, according to its financial records. Its loss for the year ended March 2026 widened to Rs 58.1 crore from Rs 28.2 crore in the previous year. That stated, topline from operations increased 35 percent to Rs 966.2 crore from Rs 716 crore during the same period.

The firm competes with listed peers such as Jubilant FoodWorks, Devyani International, Westlife Foodworld, Sapphire Foods India and Restaurant Brands Asia.

Motilal Oswal Investment Advisors, ICICI Securities and Nuvama Wealth Management are the merchant bankers managing the EverBrands India IPO.