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Devyani International Limited: Company which operates over 500 outlets of KFC, Pizza Hut, Taco Bell and Costa Coffee goes public

One of India’s biggest brands franchisee Devyani International Limited announced its plans for an Initial Public Offering (IPO).

The company operates over 500 retail outlets of KFC, Taco Bell, Costa Coffee and Pizza Hut combined across India. Worldwide the firm manages over 50,000 restaurants across 150 nations.

Even amidst the ongoing Covid-19 pandemic, Devyani International in the first two quarters of this year opened 109 outlets of its core brands across India.




PUBLIC ISSUE

The IPO will take place from August 4, 2021 and is said to be worth Indian ₹1,838 crore. Of this ₹440 crores will account for fresh issue of shares and the balance of ₹1,398 crore will be offered to the existing shareholders of the company namely RJ Corp and Dunearn Investments Group.

The company’s share is said to debut on the stock market with a sale price that is expected to range between Indian ₹86 and ₹90.

Devyani has reported that the IPO will offer a reservation of 550,000 equity shares for its employees and approximately 75% of the total issue size has been reserved for the qualified institutional buyers, 10% is allotted to retail investors and remaining 15% for non -institutional buyers.



Investors are permitted to bid for a minimum of 165 equity shares that can go up in multiples of 165 thereon. The company also said that the net proceeds raised through this IPO will be utilized to repay the firms outstanding debts.

ITS COMPETITORS

Barbeque Nation, a dining restaurant chain saw an exciting IPO this year. It was subscribed at least 5.98 times on its last bidding day. It issued an offer size of 49.99 lakh equity shares and received bids for a whopping 2.99 crore equity shares.

Apart from BBQ nation, Burger King India made an IPO during the month of December 2020. It was reported that the food joint’s share price ended up being 125% higher than the anticipated price on its first day of listing.

Food delivering platform Zomato recently opened a very successful IPO as well.

Looking at all the former food retail outlet IPOs and several other allied industries, the IPO performances is anticipated to be exciting and fabulous and might even exceed expert expectations.

Ahead of the IPO, Devyani International last week witnessed a huge demand as its share premium jumped up by a whopping 40% in the Grey market. A grey market place is an unofficial trading platform where trading of such shares begin after the company makes the announcement related to the initial public offering price band. This goes on until the IPO shares are listed on the stock exchange.