Jubilant FoodWorks Limited has invested Rs 19 crore in its wholly owned subsidiary Jubilant FoodWorks Lanka (Private) Limited through a subscription to optionally convertible preference shares. The board approved the investment on June 15, 2026.
Jubilant FoodWorks subscribed to 95,271,430 Optionally Convertible Non-Cumulative Preference Shares of Jubilant Sri Lanka at LKR 7 per share for an aggregate consideration of LKR 666,900,010, equivalent to about Rs 19 crore. The proceeds will be used for business operations and expansion, including capital expenditure.
The OCPS carry a discretionary non-cumulative dividend at 8 percent per annum. These shares may be converted into an equal number of equity shares or redeemed at any time within 15 years from the date of allotment at the discretion of Jubilant Sri Lanka. The consideration will be paid entirely in cash, and the transaction is expected to close within three months.
Jubilant Sri Lanka was incorporated on September 14, 2010 and operates in the foodservice industry. For the year ended March 31, 2026, it reported a turnover of LKR 4,437,398,222 and a net loss of LKR 400,837,313, with a networth of LKR 218,610,304.
The transaction is classified as a related party transaction conducted at arms length since Jubilant Sri Lanka is a wholly owned subsidiary. Promoters and promoter group entities have no additional interest in the subsidiary beyond its wholly owned status. Post investment, Jubilant Sri Lanka will continue as a wholly owned subsidiary of Jubilant FoodWorks.
Disclaimer: This article is based on company filings submitted to the Bombay Stock Exchange (BSE) and National Stock Exchange of India (NSE) and is for informational purposes only. It does not constitute investment advice or a recommendation. Investors should conduct their own research and consult a qualified financial advisor before making investment decisions.