Devyani International IPO: Pizza Hut, KFC, Costa Coffee operator files Rs 1,400-crore IPO papers with SEBI

Income from operations from KFC and Pizza Hut shops collectively represented 76.08 per cent, 77.49 per cent and 92.28 per cent of Devyani Worldwide’s complete income from operations. (Reuters Picture)

Devyani Worldwide, the biggest franchisee of Pizza Hut, KFC and Costa Espresso, has filed a draft pink herring prospectus (DRHP) with market regulator SEBI to launch a Rs 1,400-crore IPO. The general public subject includes recent subject of fairness shares price Rs 400 crore and an offer-of-sale (OFS) of as much as 12.5 crore fairness shares by Investor Promoting Shareholder, Dunearn Investments (Mauritius) Pte. Ltd, a wholly-owned subsidiary of Temasek Holdings and Promoter Promoting Shareholders, RJ Corp Ltd. This would be the third restaurant chain to provide you with an IPO within the current time, following the profitable itemizing of Burger King India and Barbeque-Nation Hospitality. As well as, Mrs Bectors Meals Specialities, the biggest provider of buns to QSR chains equivalent to McDonald’s, KFC, Burger King and Carl’s Jr, additionally made a inventory market debut final 12 months in December.

All it is advisable to learn about Devyani Worldwide IPO

– Funding Bankers appointed to the difficulty are Kotak Mahindra Capital Firm Ltd, CLSA India Pvt Ltd, Edelweiss Financial Services Ltd and Motilal Oswal Funding Advisors Ltd. The registrar to the difficulty is Hyperlink Intime India Non-public Ltd.

– Devyani Worldwide will be part of the likes of Jubilant FoodWorks Ltd, Westlife Development Ltd and Burger King India, upon itemizing. The common trade P/E ratio is 132.93x.

– The corporate has deliberate to utilise the online proceeds in the direction of funding of compensation/prepayment of all or sure of the corporate’s borrowings price Rs 357.8 crore and for normal company functions.

– Devyani is the one largest QSR firm in India to be listed on Swiggy and was amongst the biggest QSR firm in India to be listed on the Zomato platform in 2019 and 2020. It’s anticipated that the sale worth of the QSR trade will develop at a CAGR of 12.4 per cent between 2020-25.

– Devyani Worldwide Ltd commenced its relationship with Yum in 1997 with its first Pizza Hut retailer in Jaipur. It’s additionally a franchisee of the Costa Espresso model and at present operates 297 Pizza Hut shops, 264 KFC shops and 44 Costa Espresso as on March 31, 2021 in India. Between March 2019-2021 the core model shops noticed a CAGR progress of 13.58 per cent from 469 shops to 605 shops and the corporate attributes its success and steady progress effort to its 9,356 workers, in line with DRHP.

– Income from operations from KFC and Pizza Hut shops collectively represented 76.08 per cent, 77.49 per cent and 92.28 per cent of Devyani Worldwide’s complete income from operations, in fiscals 2019, 2020 and 2021, respectively.

– Devyani Worldwide Ltd is led by Ravi Kant Jaipuria, Promoter, RJ Corp and Virag Joshi, President & CEO, who been a key strategist to the growth efforts by the corporate along with the administration workforce comprising of Manish Dawar, Wholetime Director and Chief Monetary Officer, Rajat Luthra, CEO — KFC and Amitabh Negi, CEO — Pizza Hut.

– Amid the COVID-19 pandemic, Devyani has continued to broaden its retailer community and has opened 109 shops throughout its core model enterprise within the final 6 months. KFC and Pizza Hut have been amongst the earliest to roll out contactless supply in Might 2020 and June 2020, respectively.