Quick service restaurant (QSR) company Devyani International is gearing up to launch its initial public offering (IPO) in August. Its public issue will likely open on August 4 and close on August 6, sources told Moneycontrol.
The equity markets regulator had approved its Rs 1,400 crore IPO last week, sources said, adding that the final size of the IPO might increase. This would be the third listing from the QSR industry, after Burger King and Barbeque Nation.
Kotak Mahindra Capital Company, CLSA India, Edelweiss Financial Services, and Motilal Oswal Investment are the merchant bankers to the issue.
The IPO comprises of fresh issue of Rs 400 crore and an offer for sale of up to 12,53,33,330 shares by Dunearn Investments, a wholly-owned subsidiary of Temasek Holdings and RJ Corp, its parent company.
RJ Corp is a multinational company with thriving businesses in beverages, fast-food restaurants, retail, ice cream, dairy products. It is the largest bottler for Pepsi Co in India and counts Yum Brands (the second largest QSR company in the world) and Temasek as investors.
Devyani International is the largest franchisee of Yum Brands in India. It operates brands like KFC, Pizza Hut, and Costa Coffee besides others like Vango and Food Street. Its 692 stores are located in 26 states and 155 across India and outside India in Nepal and Nigeria.
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Devyani is the single largest QSR company in India to be listed on Swiggy and Zomato in 2019 and 2020.
DIL commenced its operations with Yum in Jaipur and its first Pizza Hut store in 1997. As of March 2021, it ran 297 Pizza Hut stores, 264 KFC stores, and 44 Costa Coffee stores.
As per a company release, Devyani opened 109 stores across its core brand business in the last six months. KFC and Pizza Hut were amongst the earliest to roll out contactless delivery in May and June 2020, respectively.
Its core brands have seen a CAGR growth of 13.58 percent from 469 stores to 605 stores between March 2019-21. The company attributed its success and continuous growth effort to its 9,356 employees.
The sale value of the QSR industry will grow at a CAGR of 12,4 percent between 2020-2025, experts say.