Everstone May Part-Exit Subway in $100 Mn Round

Everstone Capital, which operates the master franchise of Subway restaurants in India, is looking to sell some of its stake in the fast food chain's local operations as part of a $100 million fund raising, three people familiar with the matter said.

- Priyamvada C. & Sneha Shah

Eversub India Pvt. Ltd, which operates the Subway outlets, has appointed Lodha Capital Markets to help with the process, the people said on the condition of anonymity, adding discussions to bring in new investors are under way.

The Subway fund raising will be a mix of primary and secondary shares, the people said. "While Everstone will off-load some of its stake in Subway in tranches, it will hold till the company taps public markets in India over the next two years," one of the persons said.

While Everstone declined to comment, Subway did not respond to Mint's emails at the time of publishing. A spokesperson for Lodha said, "This news appears to be wrong and unsubstantiated."

Everstone, which operates the master franchise through Eversub India, has the right to open and operate Subway restaurants in India, Sri Lanka, and Bangladesh.

A master franchise refers to an agreement between the franchisor (or company owner) and an organization to manage and expand its presence within a specific area.