Devyani International IPO Should You Subscribe. Business, Financials, Managment and Other Details of Devyani International

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Devyani International, the largest franchisee of Yum Brands in India, which operates quick-service restaurant (QSR) brands such as Pizza Hut and KFC, besides its own brands has received the regulator’s approval for issuing an initial public offering (IPO).

The company is looking to raise ₹ 1,400 crores through the IPO, according to market sources. However, in the draft red herring prospectus (DRHP) filed on May 14, the company had said that it is planning to raise ₹400 crores.

It operates 692 stores in 26 states across 155 cities in India, as well as, internationally in Nepal and Nigeria.

The company’s business is broadly classified into three verticals that includes stores of KFC, Pizza Hut and Costa Coffee operated in India.

However, revenue from Pizza Hut and Costa Coffee has been falling in the last three financial years.

The Devyani International IPO open date is Aug 4, 2021, and the close date is Aug 6, 2021. The issue may be listed on Aug 16, 2021.

Issue Type Book Built Issue IPO
Face Value ₹1 per equity share
IPO Price (60) to (62) per equity share
Listing At BSE, NSE
Issue Size 22,63,01,071 shares
Fresh Issue 7,09,67,741 shares @62rs.

(aggregating up to ₹440.00 Cr)

Offer for Sale 155,333,330 Eq Shares @62rs.
(aggregating up to ₹963.07cr)

Important Dates:

IPO Open Date Aug 4, 2021
IPO Close Date Aug 6, 2021
Basis of Allotment Date Aug 11, 2021
Initiation of Refunds Aug 12, 2021
Credit of Shares to Demat Account Aug 13,2021
IPO Listing Date Aug 16, 2021

Objectives for IPO:

  • Repayment and/or prepayment of the company’s borrowings fully or partially.
  • General corporate purposes.
Company Name EPS RoNW
Devyani International Ltd (0.50) (48.52%)
Jubilant Food Works Ltd 21.22 24.95
Westlife Development Ltd (6.38) (20.66)
Burger King India Ltd. (2.87) (27.80)

Pros:

  • The product portfolio of well-recognized QSR brands.
  • It is the largest franchisee of Yum Brands in India.
  • Disciplined financial approach with a strong focus on cash flow management.
  • Strong store network; 264 KFC Stores, 297 Pizza Hut stores, and 44 Costa coffee stores.
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