Devyani International, the largest operator of well-known quick-service restaurants (QSRs) like KFC and Pizza Hut, will begin its initial public offering (IPO) next week on Dalal Street.
The business has filed its Red Herring Prospectus (RHP) with the capital markets regulator for its public offering, which will begin on Wednesday, August 4th, 2021, and run through Friday, August 6th, 2021. The public offering consists of a fresh issue of shares worth Rs 440 crore and an offer-for-sale (OFS) by existing shareholders and promoters to issue up to 15.53 crore equity shares.
Dunearn Investments Mauritius Pte owns 6.53 crore shares, while RJ Corp Ltd owns up to 9 crores. Following the successful listings of Burger King India and Barbeque-Nation Hospitality, this will be the third restaurant chain to issue an IPO in recent years.
They have appointed Kotak Mahindra Capital Company, CLSA India, Edelweiss Financial Services, and Motilal Oswal Investment Advisors as lead managers to the issue. Link Intime India Private Ltd has been appointed as registrar to the issue. Devyani will join the ranks of Jubilant FoodWorks Ltd, Westlife Development Ltd, and Burger King India if its IPO is successful.
Devyani is the largest QSR firm in India to be listed on Swiggy, and it was also among the top QSR companies in India to be listed on Zomato in 2019 and 2020.
For the last three fiscal years, the weighted average return on net worth has been 24.26%. The P/E ratio of the industry peers group was 179.21x. The net proceeds would be used to cover the repayment or prepayment of all or part of the Rs 324 crore in borrowings, as well as for general corporate reasons.
The Devyani International business is divided into three verticals, which include KFC, Pizza Hut, and Costa Coffee locations in India (KFC, Pizza Hut, and Costa Coffee referred to as Core Brands, and such business in India referred to as the Core Brands Business).
Outside India, they operate KFC and Pizza Hut stores in Nepal and Nigeria (International Business); and certain other F&B businesses, including stores of brands such as Vango and Food Street.
Devyani International had 692 stores as of March 31, 2021, and 735 stores as of June 30, 2021, across its operations, which included KFC, Pizza Hut, and Costa Coffee outlets, as well as Vaango outlets.
