Devyani International, the largest franchisee of Yum! Brands and among the largest operators of chain quick-service restaurants in India, will launch its initial public offering (IPO) on August 4.
The IPO comprises a fresh issue of Rs 440 crore and an offer for sale of 15,53,33,330 equity shares by existing selling shareholders.
The offer for sale consists of selling of 6,53,33,330 equity shares by Dunearn Investments (Mauritius) Pte Ltd, and 9 crore equity shares by promoter RJ Corp. The offer included a reservation of up to 5.5 lakh equity shares for its employees.
The price band of the issue has not been revealed by the company as of now. The issue will close on August 6. The anchor book, if any, will open for subscription for a day on August 3.
Moneycontrol was the first to break the story about Devyani International IPO opening on August 4.
The company will utilise net proceeds from its fresh issue (Rs 324 crore) for repayment of certain borrowings. The offer for sale money will go to selling shareholders.
Devyani International's Yum! Brands Inc. operates brands such as KFC, Pizza Hut and Taco Bell and has a presence globally with more than 50,000 restaurants in over 150 countries, as of December 31, 2020. In addition, it is a franchisee for the Costa Coffee brand and stores in India.
The company also operates stores outside India primarily comprising KFC and Pizza Hut stores in Nepal and Nigeria (international business); and certain other operations in the food & beverages (F&B) industry, including stores of its own brands such as Vaango and Food Street.
The company earned 94.19 percent of its revenue from core brands business (KFC, Pizza Hut and Costa Coffee), together with international business in FY21.
Despite the ongoing Covid-19 pandemic, it has continued to expand its store network and in the six months ended March 31, 2021, it has opened 109 stores in Core Brands Business.
Listed peers of the company include Jubilant FoodWorks, Westlife Development, and Burger King India.
Ravi Kant Jaipuria, Varun Jaipuria, and RJ Corp are the promoters of the company, having 75.79 percent shareholding as of now. Among public shareholders, Dunearn held 14.07 percent stake in the company, Yum India 4.57 percent, Khandwala Finstock 1.89 percent, and Sabre Investment Consultants LLP 1.52 percent.
Kotak Mahindra Capital Company, CLSA India, Edelweiss Financial Services, and Motilal Oswal Investment Advisors are the book-running lead managers to the issue.