Devyani International, India’s largest franchisee of PizzaHut, KFC, and Costa Coffee, has received approval from Sebi to fund Rs 1,400 crore through IPO.
The capital markets regulator Sebi has permitted Devyani International to raise Rs 1,400 crore through an initial share sale. Devyani International is India’s largest franchisee of Pizza Hut, KFC, and Costa Coffee.
The initial public offering (IPO) will involve a fresh issue of equity shares worth Rs. 400 crore and up to 125,333,330 equity shares on the offer of sale by the promoter and existing shareholders, according to the draft red herring prospectus.
Dunearn Investments (Mauritius) Pte Ltd, a wholly-owned subsidiary of Temasek Holdings, would sell 65,333,330 shares, while promoter RJ Corp will sell six crore shares, according to the announcement.
According to a Monday update from Sebi, Devyani International, which filed preliminary IPO papers with Sebi in May, received its observations on July 16.
A Sebi approval is required for every firm to conduct a public offering. Offering here includes initial public offering (IPO), a follow-on public offering (FPO), or a rights issue.
The IPO is expected to raise Rs.1,400 crore (Source: Merchant Banking).
The proceeds of the new offering will be used to pay down debt and for other company reasons.
RJ Corp, Pepsico’s largest bottling partner, owns Devyani International, which has interests in the Indian retail food and beverage (F&B) market.
Vango, Food Street, Masala Twist, Ile Bar, Amreli, and Ckrussh Juice Bar are among the company’s own brands. It also operates Yum Brands’ core brands such as Pizza Hut, KFC, and Costa Coffee
Devyani Foreign is Yum Brands’ largest franchisee in India; it operates QSR (quick-service restaurant) in 692 locations in 26 states and 155 cities across India. They also operate in international locations like Nepal and Nigeria. As of March 2021, they had 297 Pizza Hut locations, 264 KFC locations, and 44 Costa Coffee locations in India.
Devyani International is led by RJ Corp promoter Ravi Kant Jaipuria and Virag Joshi, president and CEO, who has been a key thinker in the company’s expansion initiatives.
However, it should be highlighted that revenue from two of the company’s most popular franchises, Pizza Hut and Costa Coffee, has been steadily declining over the last three financial years.
