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KFC, Pizza Hut and Costa Coffee operator Devyani International joins QSR listing wave, files for Rs 1,400 crore IPO

If plans fructify, this would be the third QSR IPO in recent times post-Burger King and Barbecue Nation. Devyani International is an arm of diversified conglomerate RJ Corp, the largest bottler for Pepsi Co in India and it also counts Yum ! Brands, the second-largest QSR company in the world, and Singapore’s Temasek as investors.

May 16, 2021 / 11:04 AM IST

Food and beverages major Devyani International, the largest franchisee of Pizza Hut, KFC and Costa Coffee in India has filed its DRHP with market regulator Sebi to raise around Rs 1,400 crore via an initial public offer (IPO), sources with knowledge of the matter told Moneycontrol.

Moneycontrol was the first to report the listing plans of Devyani International on February 19, 2021.

The firm is an arm of diversified conglomerate RJ Corp, the largest bottler for Pepsi Co in India and it also counts Yum! Brands, the second-largest QSR (quick-service restaurant) company in the world, and Singapore’s Temasek as investors.

The move makes the Gurugram-headquartered company the third QSR player to attempt a domestic listing, post the market debuts of Burger King and Barbecue Nation. Mrs Bector’s Food Specialities is the other player in the food segment which hit the bourses in December 2020.

“Devyani International has filed papers with the regulator to raise Rs 1,400 crore for its proposed IPO,” said one of the persons cited above.

“The IPO is a mixture of primary and secondary issue of shares with a fresh issue component of Rs 400 crore and an OFS

(offer for sale) component up to 125,333,330 equity shares,” a second person told Moneycontrol.

“The IPO will facilitate a partial exit for investor Temasek and RJ Corp. The proceeds will be used to reduce debt and for general corporate purposes,” added a third person.

“Kotak Mahindra Capital, Edelweiss Financial Services, CLSA and Motilal Oswal are the investment banks working on the deal. Cyril Amarchand Mangaldas and Shardul Amarchand Mangaldas are the legal advisors," the third person elaborated.

All the three individuals spoke to Moneycontrol on condition of anonymity.

Moneycontrol could not elicit an immediate comment from Devyani International, the investment banks and law firms.

In a related development, on December 18, 2020, Moneycontrol was the first to report the 2021 listing plans of another restaurant operator Sapphire Foods, which backs KFC, Pizza Hut and Taco Bell and counts Goldman Sachs and Samara Capital as its investors.


Devyani International is an associate company of Ravi K Jaypuria-led RJ Corp group, which is the largest bottler for Pepsico in India and has interests in beverages (including beer, milk, ice-cream), healthcare, real estate and education. Listed firm Varun Beverages, a manufacturer, bottler and distributor of beverages is part of RJ Corp. According to the firm’s website, it is the largest franchisee of Yum! Brands. The firm operates core brands such as Pizza Hut, KFC, Costa Coffee besides its own brands such as Vaango, Food Street, Masala Twist, Ile Bar, Amreli and Ckrussh Juice Bar.  It has a footprint of 692 stores in 26 states across 155 cities in India, as well as, internationally, in Nepal and Nigeria.

The firm currently operates 297 Pizza Hut stores, 264 KFC stores and 44 Costa Coffee as on March 31, 2021, in India. Between March 2019 and 2021, the core brand stores saw a CAGR growth of 13.58 percent from 469 stores to 605 stores, according to an official release.

In FY21 Devyani’s business from the core brands (India and Internationally) accounted for 94.19 percent of its revenues from operations and delivery sales represented 70.20 percent of the said revenues, an increase from 51.15 percent in FY20, the release said. It is expected that the sale value of the QSR industry will grow at a CAGR of 12.4 percent between 2020 and 2025, it added.

Yum! Brands, the second-largest QSR company in the world, picked up a minority stake in Devyani International in February 2020. This followed Devyani International’s acquisition of 74 KFC restaurants from Yum! over a period of 18 months. Yum! Brands, Inc., based in Louisville, Kentucky, has over 50,000 restaurants in more than 150 countries and territories primarily operating the company’s KFC, Pizza Hut, and Taco Bell brands.
Ashwin Mohan
first published: May 15, 2021 07:27 pm

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