Devyani International shares listed on the stock exchanges today with a robust premium more than the IPO costs when the general marketplace was trading with losses. Shares of the business started to trade at Rs 141 per share, up 56.67% from the upper finish of the IPO price tag of Rs 90 per share. Devyani International, the biggest operator of rapid-service restaurants in India is the biggest franchisee of Yum brands in India and operates brands KFC & Pizza Hut. Devyani International’s IPO was subscribed 116 occasions earlier this month with all category of investors oversubscribing their portion of the IPO.
Check Live price tag: Devyani International
Devyani International raised Rs 1,838 crore from the IPO, which was a mix of a fresh concern of equity shares worth Rs 440 crore and the remaining an supply for sale (OFS) by current shareholders of the business. Post concern the shareholding of the promoter group in the business has dropped to 65.2% from the 75.8% earlier when public shareholding has improved to 34.8% from 24.2% earlier. Qualified Institutional Buyers (QIB) had subscribed to the IPO 95.27 occasions the portion reserved for them. Non-Institutional Investors had bid for 213 occasions their portion when retail investors subscribed to the IPO 39.48 occasions the portion reserved for them.
Analysts at ICICI Direct think the IPO was priced at 7x price tag/sales (post concern) FY20 on the upper finish of the concern price tag band. “We believe DIL would be able to capture the growth owing to metro lifestyle and outside food habits. This, coupled with the company’s cost rationalisation initiatives will help drive profitability in future,” they stated in a note when pinning a ‘subscribe’ rating on the concern.