Devyani International Limited announced that the company will be seeking its initial public offering (IPO) on August 6, 2021. The company is looking to mop up around Rs 1,838.00 crore through its IPO in the coming days. Devyani International Limited was incorporated in 1991 and stands as one of the largest franchises in India. It is the largest franchisee of YUM Brands and a titan of the quick-service restaurants (QSR) industry in India. Devyani International has 655 stores across 155 cities in India. Yum Brands Inc operates many popular fast-food brands such as Pizza Hut, KFC, and Taco Bell brands. On the international side, it has over 50,000 restaurants in over 150 countries.
Here are the details of this highly-anticipated IPO that you have to know before it opens.
1) The Public Issue Size of Devyani International Limited
The Devyani International IPO is looking at an issue size of around Rs 1,838 crore in the days. The issue consists of a Fresh Issue and an Offer for Sale (OFS). The Fresh Issue stands at Rs 440 crore, while the OFS is a lofty Rs 1,398 crore with around 155,333,330 equity shares coming in at Rs 1 per equity share as the face value.
2) Price Band and Grey Market Premium (GMP)
The Price band was listed as Rs 86 to Rs 90 per share for the public issue. The GMP on July 30 stood at Rs 51. Having considered the price band of the IPO, the suggested price at which the premiums traded on the unlisted market was at Rs 137 to Rs 141 per equity share.
3) Important Pre-IPO Close Dates for Devyani International
The IPO is set to open on August 4 and close on August 6. If there are any Anchor bookings set to take place, they will happen a day before the opening date, on August 3, 2021.
4) Devyani International IPO Allotment, Listing Date
The Basis of Allotment will likely happen on August 11 after the IPO closes. The unlucky bidders who were unable to snag a share in the IPO will see their refunds returned on August 12. For those investors who were able to get a hold of shares during the subscription days, they will see the shares accredited to their respective Demat accounts on August 13. The Listing date for the company will most likely be on August 16, however, that is yet to be confirmed.
5) Devyani International IPO Lot Size
The Devyani International IPO listed the minimum lot size at 165 shares with an application amount of Rs 14,850 for the lower end. On the higher end, the lot size was listed at 2,145 shares along with an accompanying Rs 193,050 application amount. Retail investors have been allowed to apply for up to 13 lots at the upper limit.
6) Devyani International IPO Reservations
The reservations for the IPO have been given as 75 per cent for the Qualified Institutional Buyer (QIB) provided that our Company and the Selling Shareholders allocate up to 60 per cent of the QIB Portion to Anchor Investors on a discretionary basis. A further 5 per cent will be made available for Mutual Funds. The rest will be available for allocation on a proportionate basis to all QIBs, including Mutual Funds. Additionally, the Non-Institutional Investors (NIIs) will have a reservation of 15 per cent. The Retail segment’s reservation was listed at 10 per cent.
7) Object of the IPO
The company aims to use the net proceeds from the public issue to fund the repayments and also conduct pre-payments for all aspects of the company’s borrowings. The rest of the funds will go towards general corporate purposes.
8) Promoters and Leads on the Devyani International IPO
The promoters for the company will be Ravi Kant Jaipuria, Varun Jaipuria, and RJ Corp Limited. Parallelly, Kotak Mahindra Capital Company Limited, CLSA India Private Limited, and Edelweiss Financial Services Limited will be the Global Coordinators and Book Running Lead Managers for the issue. Motilal Oswal Investment Advisors Limited is the Book Running Lead Manager for Devyani International.
9) Devyani International Limited Financial Performance
Devyani International managed to bring down its losses in FY21 to Rs 62.98 crore from Rs 121.42 crore in FY20. The revenue for the same time frame went down as well to Rs 1,134.84 crore from Rs 1,516.4 crore.
10) Company Overview
As of March 31, 2021, the company has a network of 264 KFC stores, 297 Pizza Hut stores, and 44 Costa Coffee stores across the country. It has a significant presence in India and abroad. It has three main business verticals. One is the core brands under which KFC, Pizza Hut and Costa Coffee come. The second vertical is the international businesses in Nigeria and Nepal. Then there are the other businesses such as Vaango, Food Street, Masala Twist, Ile Bar, Amreli, and Ckrussh Juice Bar to name a few. The company is a well-recognised QSR brand with a massive franchise nationally and internationally and its cross-brand approach provides a lot of leveraging benefits and helps the company maintain a strong focus on cash flow management.
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