NEW DELHI -- Domino's Pizza is selling a 3 percent stake in its Indian arm to existing foreign investors for about $1 million.
According to a report in India's The Economic Times, the pizza chain is widening its foreign equity stake in the India company from 25 to 28 percent, with the issue of 3.5 million shares sold at 20 cents each to foreign investors. The move will put the market valuation of Domino's Pizza India, Ltd. at about $38 million.
Prior to the offering, the largest foreign equity holders included India Private Equity Fund (16 percent), and Mauritius and Indocean Pizza Holding (9 percent). The report said it wasn't yet clear how much each investment group increased its shares, but currently, more than 1.1 million shares are held between the two.
Domino's Pizza India runs more than 100 stores throughout the world's second-most populous nation. Reports published last year said the company had hoped to have 200 stores there by the middle of next year, but it appears growth will be slowed a bit to focus on operations and store-level profits.