Devyani International, the biggest operator of marquee fast service restaurants (QSR) such as KFC and Pizza Hut will enter Dalal Street next week to launch its initial public providing (IPO). The business has filed its Red Herring Prospectus (RHP) with the capital markets regulator for its public situation that opens on Wednesday, 4 August 2021 and will stay open for subscription by investors till Friday, 6 August 2021. The public situation comprises fresh situation of shares worth Rs 440 crore and supply-for-sale (OFS) of issuing up to 15.53 crore equity shares by current shareholders and promoters.
An OFS comprises 6.53 crore shares by Dunearn Investments Mauritius Pte, up to 9 crore shares by RJ Corp Ltd. This will be the third restaurant chain to come up with an IPO in the current time, following the effective listing of Burger King India and Barbeque-Nation Hospitality. Investment Bankers appointed to the situation are Kotak Mahindra Capital Company Ltd, CLSA India Pvt Ltd, Edelweiss Financial Services Ltd and Motilal Oswal Investment Advisors Ltd. The registrar to the situation is Link Intime India Private Ltd. Upon effective completion of its IPO, Devyani International will join the likes of Jubilant FoodOperates Ltd, Westlife Development Ltd and Burger King India.
Devyani is the single biggest QSR business in India to be listed on Swiggy and was amongst the biggest QSR providers in India to be listed on the Zomato platform in 2019 and 2020. The weighted typical return on net worth for the last 3 fiscals is 24.26 per cent. While the market peers group P/E ratio stood at 179.21x. The business has planned to utilise the net proceeds towards funding the repayment or prepayment of all or particular of borrowings worth Rs 324 crore, and for common corporate purposes.
Devyani International organization is broadly classified into 3 verticals that involves retailers of KFC, Pizza Hut and Costa Coffee, operated in India (KFC, Pizza Hut and Costa Coffee referred to as Core Brands, and such organization in India referred to as the Core Brands Business) retailers operated outdoors India mostly comprising KFC and Pizza Hut retailers operated in Nepal and Nigeria (International Business) and particular other operations in the F&B market, which includes retailers of our personal brands such as Vaango and Food Street (Other Business).
Devyani International had 692 retailers as of March 31, 2021 and 735 retailers as of June 30, 2021, across its operations, comprising KFC, Pizza Hut and Costa Coffee retailers as nicely as outlets of other brands such as Vaango.