Devyani International, the biggest establishment administrator of worldwide restaurant chains Pizza Hut, KFC and Costa Coffee, has started the documentation for an initial public offering to raise nearly Rs 1,400 crore, joining the quick service restaurant (QSR) listing wave. (Reported by THE ECONOMICS TIMES)
Devyani International filed the D(RHP) with the Securities and Exchange Board of India (SEBI)
On 16th May 2021. As per DRHP, the offer contains a new issue of ₹400 crores and an Offer of Sale of up to 125.33 million equity shares by Investor Selling Shareholder, Dunearn Investments (Mauritius) Pte. Ltd, an entirely owned auxiliary of Temasek Holdings and Promoter Selling Shareholders, RJ Corp Ltd.
What is Devyani International ?
Devyani International Limited is the biggest franchisee of Yum Brands in India and is among the biggest administrators of the quick-service restaurant’s chain in India and has 655 stores across 155 urban communities in India, as of March 31, 2021.
The organization is driven by Ravi Kant Jaipuria, Promoter, RJ Corp and Virag Joshi, President and CEO, who been a vital specialist to the development endeavours by the organization notwithstanding the supervisory crew containing Manish Dawar, Wholetime Director and Chief Financial Officer, Rajat Luthra, CEO – KFC and Amitabh Negi, CEO – Pizza Hut.
Devyani International is the single biggest QSR organization in India to be listed on online food delivery platforms like Swiggy and was among the biggest QSR organizations in India to be listed on the Zomato app in 2019 and 2020. (Zomato coming with IPO)
Why is Devyani international filing for IPO ?
Devyani International plans to raise up to ₹1,400 crores through the offering IPO. DIL plans to raise up to ₹400 crores through a fresh issue, and issue another 12.53 crore shares through an Offer For Sale (OFS).
The investors offloading stake through the OFS are Dunearn Investments (Mauritius) Pte. Ltd, an auxiliary subsidiary owned by Temasek Holdings, and advertiser RJ Corp.
The organization proposes to use about ₹357.83 crores to reimburse their debt obligation and other general corporate purposes.
The company’s promoter Mr Ravi Kant Jaipuria wants the revenue of his company, controlled through RJ Corp., and spreading over organizations in carbonated refreshments, ice-cream, fast food, schools, land, retail, and medical care, to cross $5 billion ( ₹ 34,000 crores).
Background and growth of Devyani International:
DIL started its relationship with Yum in 1997, opening its first Pizza Hut store in Jaipur and right now has 297 Pizza Hut stores across the country. The organization is a franchisee of the Costa Coffee brand, with 44 Costa Coffee stores and 264 KFC stores as of March 31, 2021.
DIL operates brands like Vaango, Food Street, Masala Twist, Ile Bar, Amreli and Ckrussh Juice Bar, and has 692 stores across 26 states in India, with a presence in Nepal and Nigeria.
In FY21, DIL’s business from the centre brands (India and worldwide) represented 94.19 per cent of its incomes from activities and delivery sales addressed 70.20 per cent of the incomes.
Yum! Brands, the second-biggest QSR organization on the planet, bought a minority stake in Devyani International in February 2020. This followed Devyani International obtaining 74 KFC restaurants from Yum! over a time of year and a half. Yum! Brands, Inc., situated in Louisville, Kentucky, has more than 50,000 restaurants in excess of 150 nations and domains essentially working the organization’s KFC, Pizza Hut, and Taco Bell brands.
Currently, in the pandemic, the organization has kept on extending its store network and has opened 109 stores across its centre brand of business over the most recent half-year. KFC and Pizza Hut were among the soonest to rollout contactless conveyance in May and June 2020, separately, it said in the DRHP.
What would be the price band of Devyani International IPO?
The price band for the offer would be marked through a book-building measure. The issue price is ₹86 to ₹90 per equity share released formally by the company.
Kotak Mahindra Capital Company Ltd, CLSA India Pvt Ltd, Edelweiss Financial Services Ltd, and Motilal Oswal Investment Advisors Ltd are the book running lead chiefs and Link Intime India is the enlistment registrar to the issue.
What would be the Grey Market Premium of Devyani International IPO?
As of 31/07/2021, the Grey Market Premium of Devyani International IPO is in the range of Rs. (44-47).
What will be the release date for Devyani International IPO?
The Initial Public Offer is opening on August 4th, 2021 and the closing date is August 6th, 2021.
How to apply for Devyani International IPO?
Now, you can apply for the IPO through the normal IPO application process using Zerodha, Upstox or any other broker and if you don’t know how to apply for IPO read our blog on ‘Easy Step by Step guide to apply for IPO in India’.
But, honestly speaking getting allotted for an IPO is like winning a lottery and it depends on your luck. If you do get allotted then read our blog on ‘How to make money using IPO in India’.
Application of IPO is subject to the block of funds with the bank account so during UPI ID application enable the Auto Pay option.
The firm is an arm of differentiated combination RJ Corp, the biggest bottler for PepsiCo in India and it additionally checks Yum! Brands, the second-biggest QSR (quick-service restaurant) organization on the planet, and Singapore’s Temasek as financial backers.
After seeing the results from the listing of other QSRs like Burger King, Barbeque Nation, Mrs. Bector Food Specialities we can safely assume that Devyani International could be another great success on the Indian Stock market.