IPO Alert: Devyani International opens on 4 August 2021

Enjoy the delicious pizzas at Pizza Hut?. You can now grab a slice of not just their pizza, but also the company that operates the restaurant chain in India—Devyani International. The company, which also operates other fast-food brands like KFC and Costa Coffee, is all set to launch its IPO this week. We bring you all the key details about this public issue.  

Key details

• IPO size: ₹1,838 crore
• Fresh issue: ₹440 crore
• Price band: ₹86–₹90 per share
• Lot size: 165 shares
• Cost per lot: 14,850
• Issue opens: 4 August 2021
• Issue closes: 6 August 2021 
• Basis of allotment date: 11 August 2021 
• Initiation of refunds: 12 August 2021
• Credit of shares to demat account: 13 August 2021
• Expected listing date: 16 August 2021

About Devyani International

Incorporated in 1991, Devyani International Limited (DIL) is the largest franchisee of American fast-food corporation Yum Brands in India. DIL, which runs outlets of brands like KFC, Pizza Hut and Costa Coffee, is one of the biggest quick-service restaurant (QSR) players in India. 

It has been associated with Yum Brands since 1997 and has consistently expanded its footprint in the country. The company has a pan-India presence, operating 696 stores across 166 cities in India as of June 2021. Between FY19 and FY21, the store network of its core brands (KFC, Pizza Hut and Costa Coffee) has grown at a CAGR of 13.5%. 

For KFC and Pizza Hut, the company also collaborates with Yum Brands for product innovation and development, brand strategy and technology initiatives.  Besides these core brands, DIL also has a presence in the food and beverage sector, through brands such as Vaango and Food Street. Further, the company also operates restaurants outside India in countries like Nepal and Nigeria. 

In FY21, its revenue shrunk by 25% to ₹1,134 crore. However, the company’s losses nearly halved to ₹62 crore in FY21 from ₹121 crore in FY20.

About the issue

The IPO size is ₹1,838 crore, which consists of a fresh issue of ₹440 crore and an offer for sale of ₹1,398 crore. The company has said that ₹324 crore from the fresh issue will be used to repay a part of its debt.    

IPO allocation quota

To know more about the IPO, read its red herring prospectus here. The issue opens on 4 August 2021 and you can subscribe to Devyani International with Upstox here. Meanwhile, we’ll keep you posted on all the updates about this IPO and the public issues that follow, so stay tuned!