Devyani International, the largest franchisee of Yum Brands, operating core brands such as Pizza Hut, KFC, Costa Coffee in India, has received market regulator Securities and Exchange Board of India’s (SEBI) nod for the Initial Public Offering.
As stated in the DRHP, the IPO looks to raise Rs 400 crore via issuance of fresh equity shares and an Offer of Sale of up to 125.33 million equity shares by Investor Selling Shareholder, Dunearn Investments (Mauritus) Pte. Ltd, a wholly owned subsidiary of Temasek Holdings and Promoter Selling Shareholders, RJ Corp Ltd.
The company, which also owns brands such as Vaango, Food Street, Masala Twist, Ile Bar, Amreli and Ckrussh Juice Bar, has 692 stores in 26 states across 155 cities in India.
Devyani International started its relationship with Yum in 1997 with its first Pizza Hut store in Jaipur. Currently it operates 297 Pizza Hut stores, 264 KFC stores and 44 Costa Coffee as on March 31, 2021 in India.
It is expected that the sale value of the QSR industry will grow at a CAGR of 12.4% between 2020 – 2025. In FY21 Devyani’s business from the core brands (India & Internationally) accounted for 94.19% of its revenues from operations and delivery sales represented 70.20% of the said revenues, an increase from 51.15% in FY20.
Despite the pandemic, it has continued to expand its store network and has opened 109 stores across its core brand business in the last 6 months.
Kotak Mahindra Capital Company Ltd, CLSA India Pvt Ltd, Edelweiss Financial Services Ltd, Motilal Oswal Investment Advisors Ltd. are investment bankers to the issue.
