Devyani International IPO
Devyani International, the largest Yum!
Brands franchisee and one of India's leading chain quick-service restaurant operators
will launch its initial public offering on August 4th (IPO).
The IPO includes a new issuance of Rs 440
crore as well as a 15,53,33,330 equity share offer for sale by existing selling
shareholders.
Dunearn Investments (Mauritius) Pte Ltd is
selling 6,53,33,330 equity shares, while promoter RJ Corp is selling 9 crore
equity shares in the offer. As part of the deal, employees were given up to 5.5
lakh equity shares.
As of now, the corporation has not
specified the issue's price range. The deadline for submissions is August 6. On
August 3, the anchor book, if there is any, will be available for subscription
for a day.
The company plans to use the net proceeds
from its new issue (Rs 324 crore) to repay certain debts. The money from the
offer for sale will go to the selling shareholders.
Yum! Brands Inc., a unit of Devyani
International, operates KFC, Pizza Hut, and Taco Bell, and has more than 50,000
restaurants in over 150 countries as of December 31, 2020. It is also an Indian
franchisee for the Costa Coffee brand and outlets.
Outside of India, the company operates KFC
and Pizza Hut locations in Nepal and Nigeria (international business), as well
as various other food and beverage (F&B) businesses, Vaango and Food Street
are two of the company's own-brand stores.
In FY21, income from core brands (KFC,
Pizza Hut, and Costa Coffee) and overseas operations accounted for 94.19
percent of total sales.
Despite the ongoing Covid-19 epidemic, it
has continued to expand its retail network, opening 109 outlets in Core Brands
Business in the six months ended March 31, 2021.
The company's competitors include Jubilant
FoodWorks, Westlife Development, and Burger King India.
The company's promoters are Ravi Kant
Jaipuria, Varun Jaipuria, and RJ Corp, who currently hold 75.79 percent of the
company's shares. Dunearn owned 14.07 percent of the company, Yum India 4.57
percent, Khandwala Finstock 1.89 percent, and Sabre Investment Consultants LLP
1.52 percent, according to public shareholders.
Kotak Mahindra Capital Company, CLSA India,
Edelweiss Financial Services, and Motilal Oswal Investment Advisors are the
issue's book-running lead managers.