Devyani International Limited IPO – Aug 4 to 6

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Devyani International Limited IPO – Aug 4 to 6

August 02, 2021
Devyani International Limited IPO – Aug 4 to 6

Devyani International Ltd. is coming out with a fresh public issue to raise Rs 1,838 crores from the market.

Key details of the issue:

  • Issue opens – Aug 4 (Wednesday)
  • Issue closes – Aug 6 (Friday)
  • Issue size – Rs 1,838 crores
  • Price band – Rs 86 to 90 per equity share
  • Bid lot – 165 shares and in multiples thereof
  • Employee reservation – 5,50,000 equity shares (Rs 4.95 crores at the upper price band)

And here are some details of the company and further details on the Devyani International Ltd. issue.

Company details:

Devyani International Limited is the largest franchisee of Yum Brands in India and is among the largest operators of chain quick service restaurants (QSR) in India (Source: GlobalData Report), on a non-exclusive basis, and operate 655 stores across 155 cities in India, as of Mar 31, 2021, and 696 stores across 166 cities in India, as of June 30, 2021. Yum! Brands Inc. operates brands such as KFC, Pizza Hut and Taco Bell brands and has presence globally with more than 50,000 restaurants in over 150 countries, as of Dec 31, 2020. In addition, they are a franchisee for the Costa Coffee brand and stores in India.

Their business is broadly classified into three verticals that include stores of KFC, Pizza Hut and Costa Coffee operated in India (KFC, Pizza Hut and Costa Coffee referred to as “core brands”, and such business in India referred to as the “core brands business”); stores operated outside India, primarily comprising KFC and Pizza Hut stores operated in Nepal and Nigeria (International Business); and certain other operations in the F&B industry, including stores of their own brands such as Vaango and Food Street (Other Business).

Despite the ongoing COVID-19 pandemic, they have continued to expand their store network and in the six months ended Mar 31, 2021, they opened 109 stores in their Core Brands Business. Their defined store expansion and development process is focused on high-potential locations across towns and cities, airports, high street locations, malls, food courts, hospitals, business hubs and transit areas. They ensure that their new stores are consistent in terms of look and feel across various formats that include dine-in, takeaway and delivery.

They collaborate with Yum across various aspects of their operations for KFC and Pizza Hut for the franchisor’s brand protection and management, including product innovation and development, brand strategy and technology initiatives. They also work closely with Yum on advertising, promotion and marketing activities. For Costa Coffee, they retain flexibility over their operations with respect to similar parameters and are supported by Costa in determining their menu, ingredients, suppliers and distributors.

They ensure that employees across their Core Brands Business, International Business and Other Business undergo training to be able to provide quality customer service and ensure high standards of food safety and quality. Their employee engagement and training processes have led them to being awarded as a Great Workplace in 2018 and as one of India’s 100 Best Workplaces for Women 2020 in 2020 by the Great Place to Work Institute, India.

Issue size: Rs 1,838 crores

Issue break-up:

  • QIB – 75% of the net offer – Rs 1,374.79 crores
  • NIB – 15% of the net offer – Rs 274.96 crores
  • RET – 10% of the net offer – Rs 183.3 crores

Listing: NSE and BSE

Registrar: Link Intime India Private Limited

UPI: All retail applications through brokers are compulsorily in UPI mode

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