EverBrands India Limited, the company that operates Subway restaurants across India, Sri Lanka and Bangladesh, has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for an initial public offering of up to ₹600 crore.

The proposed IPO will comprise entirely of a fresh issue of equity shares, with no Offer for Sale (OFS) component. The company may also consider a pre-IPO placement of up to ₹120 crore. If completed, the size of the fresh issue would be reduced accordingly.

The DRHP was filed on September 28, 2026, marking a significant step forward from the preliminary IPO plans reported earlier this year.

Who is actually going public?

The proposed IPO is not an IPO of Subway globally.

The issuer is EverBrands India Limited, formerly known as Culinary Brands Private Limited.

EverBrands operates as a multi-brand food and beverage platform with two principal businesses: quick-service restaurants and beverages.

Its portfolio includes:

• Subway

• Lavazza

• Dilmah

• Fresh & Honest

In the QSR segment, EverBrands holds the exclusive master franchise rights for Subway restaurants across India, Sri Lanka and Bangladesh.

This makes the proposed listing one of the more closely watched upcoming IPOs in India's organised food-services sector.

₹600 Crore IPO: Where will the money go?

Unlike an OFS-led issue, the proposed IPO is designed primarily to bring fresh capital into the business.

According to the DRHP, EverBrands plans to deploy the proceeds through its wholly owned subsidiary, Culinary Brands India Private Limited.

The proposed allocation includes:

₹326.85 crore for new Subway stores

The largest portion of the IPO proceeds — ₹326.85 crore — will be used for capital expenditure to establish 460 new Subway stores under the Company-Owned, Company-Operated (COCO) model during FY28 and FY29.

₹125 crore for debt repayment

Another ₹125 crore is proposed to be used for repayment or pre-payment of certain borrowings of Culinary Brands India.

Remaining funds

The balance of the IPO proceeds will be used for general corporate purposes.

The proposed use of funds shows that the IPO is primarily being positioned as a growth-capital exercise, with a significant focus on expanding Subway's company-operated network.

Subway has already crossed 1,000 stores in India

EverBrands had 1,008 Subway stores in India as of March 31, 2026.

Of these:

• 678 were COCO stores

• 330 were franchise-owned, franchise-operated (FOFO) stores

The company also had eight FOFO Subway stores in Sri Lanka.

The company's COCO network has expanded sharply over the past two years.

The expansion represents a substantial shift towards company-operated stores within EverBrands' Subway network.

QSR revenue jumps to ₹693 crore

The rapid store expansion has translated into significant growth in EverBrands' QSR business.

Revenue from operations in the QSR vertical increased to:

• ₹355.31 crore in FY24

• ₹480.38 crore in FY25

• ₹693.09 crore in FY26

The figures underline the growing contribution of the Subway business to EverBrands' overall operations.

Overall revenue rises, but losses widen

EverBrands' overall revenue from operations increased by around 35% year-on-year in FY26 to approximately ₹966.2 crore, compared with around ₹716 crore in FY25.

However, the company remains loss-making.

Its loss for FY26 stood at approximately ₹58.1 crore, compared with a loss of around ₹28.2 crore in FY25.

That means the IPO story combines strong top-line growth and rapid network expansion with a still-negative bottom line.

For potential public-market investors, the company's ability to translate its expanding store network into sustainable profitability will therefore be a key area to watch.

EverBrands is more than Subway

Although Subway is the company's flagship QSR business, EverBrands is positioning itself as a broader food and beverage platform.

Its beverage portfolio includes Lavazza, Dilmah and Fresh & Honest.

The beverage vertical generated revenue from operations of:

• ₹172.16 crore in FY24

• ₹206.36 crore in FY25

• ₹240.57 crore in FY26

EverBrands' installed coffee-machine base also reached 9,455 machines as of March 31, 2026, up from 8,322 a year earlier.

The diversification gives EverBrands exposure beyond the QSR segment, although Subway remains central to the company's overall business.

From potential $150 million IPO to ₹600 crore DRHP

The current IPO structure is notably different from the preliminary plans reported earlier this year.

In March 2026, reports suggested that Everstone-backed Subway India was considering an IPO of around $100 million to $150 million, potentially translating into roughly ₹1,400 crore to ₹1,600 crore at the time.

Those reports were based on early-stage IPO preparations and banker discussions.

The actual DRHP filed in September now proposes a significantly different structure:

Current proposed issue: ₹600 crore

OFS: None

Fresh issue: Up to ₹600 crore

Potential pre-IPO placement: Up to ₹120 crore

The final IPO size could therefore change depending on whether a pre-IPO placement is completed before the Red Herring Prospectus is filed.

Who owns EverBrands?

EverBrands' shareholder base includes financial investors and other shareholders.

According to the DRHP-based disclosures reported after the filing, EverBrands Ventures Pte Ltd is the largest shareholder, while Norwest Capital and Playbook Partners India are among the other significant investors.

Importantly, the proposed IPO does not currently include an OFS, meaning existing shareholders are not selling their shares through the proposed public issue.

Playbook Partners' investment added to IPO interest

Earlier in 2026, Playbook Partners reportedly acquired around a 5% stake in Subway India's parent business for approximately ₹130 crore.

The transaction had reportedly valued the business at around ₹2,600 crore to ₹2,800 crore.

That transaction became an important private-market reference point ahead of the IPO process.

However, the private transaction valuation should not be treated as the valuation of the upcoming IPO. The eventual IPO valuation will depend on the number of shares issued and the price band determined closer to the public issue.

EverBrands' master franchise relationship with Subway

The current structure has its roots in Subway's 2021 partnership with Everstone.

In November 2021, Subway announced a master franchise partnership with Everstone Group covering India, Sri Lanka and Bangladesh.

At the time, the companies said they planned to add more than 2,000 Subway restaurants across the three markets over a 10-year period.

The partnership represented a major shift in Subway's expansion strategy in the region and laid the foundation for the consolidated operating structure that now sits within EverBrands.

What investors will be watching

The proposed IPO comes with several business factors that will be closely examined during the SEBI review and eventual public issue.

1. Subway dependence

Subway is a major contributor to EverBrands' QSR business. Changes in the Subway brand, franchise relationship or consumer demand could therefore have a material impact on EverBrands.

2. Continued losses

Despite significant revenue growth, EverBrands reported a larger net loss in FY26.

3. COCO expansion

The company plans to deploy ₹326.85 crore towards 460 new company-operated Subway stores.

The success of these stores will be important for the company's future profitability.

4. Franchise agreement

The business depends significantly on its master franchise relationship with Subway across its operating markets.

5. Competition

EverBrands operates in an increasingly competitive Indian food-services market, competing with established QSR and restaurant operators across burgers, pizza, chicken, sandwiches and other food categories.

Subway India IPO Timeline

What happens next?

The filing of the DRHP is only the beginning of the formal IPO process.

The next major steps include SEBI's review of the draft offer document, regulatory observations, filing of the Red Herring Prospectus, announcement of the price band and issue dates, and eventually the opening and listing of the shares.

As of September 30, EverBrands has not announced the IPO price band, lot size, subscription dates or listing date.

Those details will emerge closer to the launch of the public issue.

The bigger picture for India's QSR industry

EverBrands' proposed IPO comes at a time when India's organised food-services industry is expanding rapidly.

The company's filing provides investors with exposure to a business combining an international QSR brand with coffee, tea and beverage operations.

The proposed ₹600-crore fundraise is also notable because a substantial portion is earmarked directly for new Subway stores rather than an OFS by existing shareholders.

The company's next phase will therefore be closely tied to whether it can convert rapid store expansion into stronger operating performance and eventually profitability.

For Subway, the proposed listing also marks a significant evolution of its India business — from a franchise network into a large, increasingly company-operated food-services platform seeking access to public capital markets.

Key IPO Details

Company: EverBrands India LimitedFlagship brand: SubwayIPO size: Up to ₹600 croreIssue type: Fresh issueOFS: NonePotential pre-IPO placement: Up to ₹120 croreSubway stores in India: 1,008 as of March 31, 2026COCO stores: 678FOFO stores: 330FY26 revenue: Approximately ₹966.2 croreFY26 net loss: Approximately ₹58.1 croreIPO proceeds for new Subway stores: ₹326.85 croreNew Subway stores planned: 460Debt repayment/prepayment: ₹125 croreLead managers: Motilal Oswal Investment Advisors, ICICI Securities and Nuvama Wealth ManagementIPO price band: Not announcedIPO dates: Not announcedListing date: Not announced