Devyani International, the single biggest operator of marquee speedy-service restaurants (QSR) such as KFC, Costa Coffee, and Pizza Hut has set the cost band for its upcoming IPO at Rs 86-90 per share. At the upper finish of the cost band, the enterprise will look to raise Rs 1,838 crore from the principal marketplace. Devyani International’s IPO opens next week on August 4 and will stay open for subscription till August 6. This will make it the third restaurant chain to raise funds by means of an IPO in current time, just after the productive listing of Burger King India and Barbeque Nation Hospitality.
Devyani International’s IPO consists of a fresh situation of equity shares and an present for sale. The enterprise will raise Rs 440 crore by means of a fresh situation of equity shares though current shareholders will sell 15.53 crore equity shares, which translates to Rs 1,398 crore at the upper finish of the cost band. The enterprise plans to use the funds raise by means of the fresh situation for repayment or prepayment of all borrowings. Investors can bid for the situation in a bid lot of 165 equity shares and in multiples thereafter. At the larger finish of the cost band, the minimum investment for the IPO would be Rs 14,850 per investor.
75% of the complete situation will be reserved for Qualified Institutional Buyers (QIB), though 15% will be kept for Non-Institutional Investors (NII) and 10% for retail investors. Devyani International has also kept 5.50 lakh shares reserved for its personnel. Upon productive completion of its IPO, Devyani International will join the likes of Jubilant FoodWorks Ltd, Westlife Development Ltd and Burger King India.
The present for sale will see promoter RJ Corp Limited sell 80.48 lakh equity shares and one more shareholder Dunearn sell 16.33 lakh equity shares. Devyani International is amongst the single biggest QSR providers in India to be listed on Swiggy and Zomato in the calendar years 2019 and 2020. The enterprise is a loss-generating entity, reporting a net loss of Rs 62.99 crore in the earlier monetary year. Devyani International mentioned that its income from core brands, along with the international enterprise, represented 83%, 82.94% and 94.19% of their income from operations in the earlier 3 monetary years.