30 Jul , 2021 By : Kanchan Joshi
MUMBAI: Devyani International Ltd (DIL), the largest franchisee of Pizza Hut, KFC, and Costa Coffee, has fixed the price band of its initial public offering (IPO) at Rs86-90 a share. Earlier, the firm said its IPO will open for subscription on 4 August and close on 6 August.
The IPO consists of a fresh issue of Rs440 crore and an offer for sale of issuing upto 155.33 million shares by its existing shareholders and promoters.
At the upper band price of rs90, the firm will raise Rs1,838 crore. An offer for sale or OFS comprising 65.34 million shares owned by Dunearn Investments Mauritius Pte, and upto 90 million shares by RJ Corp Ltd was also announced by Devyani International. The proceeds from the issue will be used for repayment of certain or full borrowings of the firm.
As of June 2021, the aggregate outstanding borrowings of the company (on a consolidated level) stood at Rs541.59 crore.
Devyani is the single largest QSR company in India to be listed on Swiggy, and was amongst the largest QSR companies in India be to listed on the Zomato platform in 2019 and 2020.
Despite the pandemic, the company has continued to expand its store network. It has opened 109 stores across its core brand business in the last 6 months. KFC and Pizza Hut were among the earliest to roll out contactless delivery in May 2020 and June 2020, respectively, according to the company.
The firm currently operates 297 Pizza Hut stores, 264 KFC stores and 44 Costa Coffee outlets as of 31 March in India. During March 2019-2021, the core brand stores saw a compounded annual growth rate (CAGR) of 13.58% from 469 stores to 605 stores.
Kotak Mahindra Capital Company Ltd, CLSA India Pvt Ltd, Edelweiss Financial Services Ltd, and Motilal Oswal Investment Advisors Ltd will serve as investment bankers for the IPO.
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