Devyani International has fixed the price band for its forthcoming initial public offer (IPO) at Rs 86-90 range. The Rs 1,838 crore issue by the largest franchisee of KFC, Pizza Hut, and Costa Coffee, will open for subscription on August 4 and close on August 6.
About Company :-
Incorporated in 1991, Devyani International Ltd is the largest franchisee of Yum Brands and among the largest quick-service restaurants (QSR) chain operators in India with 655 stores across 155 cities all over the country as of Mar 31, 2021. Yum Brands Inc operates many fast food brands i.e. Pizza Hut, KFC, and Taco Bell brands.
It operates 3 business verticals;
- Core Brands (KFC, Pizza Hut, and Costa Coffee stores in India),
-
International Business (stores in foreign countries i.e. Nepal and Nigeria), and
-
Other Businesses (own branded stores i.e. Vaango, Food Street, Masala Twist, Ile Bar, Amreli, and Ckrussh Juice Bar).
Initially, the business started with a Pizza Hut store in Jaipur but subsequently expanded operations in both KFC and Pizza hut, as of March 31, 2021, it operates 264 KFC stores, 297 Pizza Hut stores, and 44 Costa Coffee stores in India.
Competitive strengths
- The product portfolio of well-recognized QSR brands.
- Largest franchisee of Yum Brands in India.
- Cross brand synergies provide operating leverage benefits.
- Disciplined financial approach with a strong focus on cash flow management.
- Strong store network; 264 KFC Stores, 297 Pizza Hut stores, and 44 Costa coffee stores.
Company Promoters:
Ravi Kant Jaipuria, Varun Jaipuria, and RJ Corp Limited are the company promoter.
Company Financials:
| Particulars | For the year/period ended (₹ in million) | ||
|---|---|---|---|
| 31-Mar-21 | 31-Mar-20 | 31-Mar-19 | |
| Total Assets | 16,684.07 | 18,835.76 | 18,074.90 |
| Total Revenue | 11,988.95 | 15,350.41 | 13,236.83 |
| Profit After Tax | (813.24) | (787.52) | (592.90) |
Objects of the Issue:
- Repayment and/or prepayment of company’s borrowings fully or partially.
- General corporate purposes.
Devyani International IPO Details
| IPO Opening Date | Aug 4, 2021 |
| IPO Closing Date | Aug 6, 2021 |
| Issue Type | Book Built Issue IPO |
| Face Value | ₹1 per equity share |
| IPO Price | ₹86 to ₹90 per equity share |
| Market Lot | 165 Shares |
| Min Order Quantity | 165 Shares |
| Listing At | BSE, NSE |
| Issue Size | [.] Eq Shares of ₹1 (aggregating up to ₹1,838.00 Cr) |
| Fresh Issue | [.] Eq Shares of ₹1 (aggregating up to ₹440.00 Cr) |
| Offer for Sale | 155,333,330 Eq Shares of ₹1 (aggregating up to ₹1,398.00 Cr) |
Devyani International IPO Tentative Timetable
The Devyani International IPO open date is Aug 4, 2021, and the close date is Aug 6, 2021. The issue may list on Aug 16, 2021.
| IPO Open Date | Aug 4, 2021 |
| IPO Close Date | Aug 6, 2021 |
| Basis of Allotment Date | Aug 11, 2021 |
| Initiation of Refunds | Aug 12, 2021 |
| Credit of Shares to Demat Account | Aug 13, 2021 |
| IPO Listing Date | Aug 16, 2021 |
Devyani International IPO Lot Size
The Devyani International IPO market lot size is 165 shares. A retail-individual investor can apply for up to 13 lots (2145 shares or ₹193,050).
| Application | Lots | Shares | Amount (Cut-off) |
|---|---|---|---|
| Minimum | 1 | 165 | ₹14,850 |
| Maximum | 13 | 2145 | ₹193,050 |
Devyani International IPO Promoter Holding
| Pre Issue Share Holding | 75.79% |
| Post Issue Share Holding | 67.99% |