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Devyani International Limited IPO: Study Before Subscribing

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Devyani International Limited, the largest franchisee of Yum Brands in India, will launch its initial public offer (IPO) on Aug 04, 2021. The offer will close on Aug 06, 2021, and the company has fixed the price band at ₹86-90 per equity share.

About Devyani International Limited

Devyani International Limited, the largest franchisee of Yum Brands in India and among the largest operator of quick-service restaurants (QSR) chains in India, has 696 stores across 166 cities all over the country as of June 30, 2021. Yum Brands Inc. operates brands such as KFC, Pizza Hut and Taco Bell and has a global presence with more than 50,000 restaurants in over 150 countries as of December 31, 2020. In addition, the company is also a franchisee for the Costa Coffee brand and stores in India. The company operates 284 KFC stores, 317 Pizza Hut stores, and 44 Costa Coffee stores in India as of June 30, 2021.

Devyani International Limited IPO Issue Details

OPENS ON: Aug 4, 2021
CLOSES ON: Aug 6, 2021 
Price band: ₹86 to ₹90 per equity share
Lot size: 165 Shares
One lot costing: ₹14,850
Face Value: ₹1 per equity share 
Listing on: NSE, BSE
Issue size: ₹1,838.00 crores (Fresh issue: ₹440.00 crores + Offer For Sale: ₹1,398.00 crores)
Shareholding: Promoter holding will stand at 67.99%  post-issue from 75.79% pre-issue.

Will list on the exchange on Aug 16, 2021.

Objects of the issue:

  • To make repayment and/or prepayment of the company’s borrowings fully or partially.
  • To meet general corporate purposes.

Interesting facts about Devyani International Limited IPO:

  • The company operates 3 business verticals; 1. Core Brands Business (KFC, Pizza Hut, and Costa Coffee stores in India), 2. International Business (stores in foreign countries i.e. Nepal and Nigeria), and 3. Other businesses (own branded stores such as Vaango and Food Street). 
  • Revenue from core brands’ business, together with international business, represented 83.01%, 82.94% and 94.19% of revenue from operations in Fiscals 2019, 2020 and 2021, respectively.
  • Considering the FY-21 adjusted EBITDA of Rs.1789.23 on a post-issue basis, the company is going to list at EV/EBITDA of 62.39 with a market cap of Rs.1,08,227 mn, while its peers namely Jubilant Food and Westlife Development are trading at EV/EBITDA of 66.02 and 206.11 respectively.

Get the complete coverage of the Devyani International Limited IPO in the MSFL Research Report Here. To apply for Devyani International Limited IPO, you can do it from our Marwadi Shares & Finance Ltd website.

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