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market | IST

Devyani International IPO: Pizza Hut operator to launch offering today; key things to know

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Devyani International IPO will open for subscription on August 4. The company has set a price range of Rs 86-90 per equity share for its public offering. At the higher end of the pricing band, the total fundraising comes to Rs 1,838 crore.

Devyani International, the largest franchisee of Pizza Hut, KFC, and Costa Coffee in India, is going to open its initial public offering (IPO) for subscription today.
Along with Devyani International, three other IPOs including that of Krsnaa Diagnostics, Windlas Biotech, and Exxaro Tiles will be launched.
Here are key things to know about Devyani International’s IPO:
  1. The three-day initial public offering will open for subscription on August 4, and conclude on August 6, according to the company’s virtual press conference.
  2. In consultation with merchant bankers, Devyani International has set a price range of Rs 86-90 per equity share for its public offering. At the higher end of the pricing band, the total fundraising comes to Rs 1,838 crore.
  3. The IPO consists of a fresh issue of equity shares worth Rs 440 crore and an offer-for-sale of up to 155,333,330 equity shares by the promoter and existing shareholders. Under the offer-for-sale, Dunearn Investments (Mauritius) Pte Ltd, a wholly-owned subsidiary of Temasek Holdings, will offload 6,53,33,330 shares and promoter RJ Corp will sell 9 crore shares.
  4. Investors can bid for a minimum of 165 equity shares and in multiples of 165 equity shares thereafter. Retail investors can invest a minimum of Rs 14,850 per lot and the maximum investment would be Rs 1,93,050 for 13 lots.
  5. The company has reserved up to 75 percent of the total offer for the investment by qualified institutional buyers, 10 percent by retail investors and 15 percent by non-institutional investors.
  6. The allotment date for Devyani International is August 11. Refunds and share accreditation are expected to take place on August 12 and 13, respectively. In terms of the listing, a preliminary date of August 16 has been set, although this has yet to be verified.
  7. The company will utilise the net proceeds from its fresh issue towards repayment of borrowings and general corporate purposes. The offer for sale money will go to selling shareholders.
  8. Devyani International is an associate company of RJ Corp, the largest bottling partner of food and beverages (F&B) major Pepsico, and has interests in the Indian retail F&B sector.
    The company reduced its loss in FY21 to Rs 62.98 crore from Rs 121.42 crore in FY20. Revenue in the same period declined to Rs 1,134.84 crore from Rs 1,516.4 crore.Devyani International is the largest franchisee of Yum Brands, operating core brands such as Pizza Hut, KFC, Costa Coffee besides its own brands such as Vaango, Food Street, Masala Twist, among others. It currently operates 297 Pizza Hut stores, 264 KFC stores, and 44 Costa Coffee as of March 2021 in India.