Devyani International Limited IPO: GMP, Issue Price, Issue Size

Devyani International IPO
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Devyani International Ltd is the largest franchisee of Yum Brands and among the largest quick-service restaurants (QSR) chain operators in India is all set to make a debut in the stock market with IPO of issue size of 1838 Cr.   

Devyani International Limited IPO –Overview  

Devyani International Limited IPO Issue Date         4- 6 August 2021        
Devyani International Limited IPO Opening Date         4 August 2021        
Devyani International Limited IPO Face Value         INR 1 per share         
Devyani International Limited IPO Price         INR 90 per share        
Devyani International Limited IPO Lot Size         165 Shares        
Issue Size         1,838.00   Cr        
Offer for sale         1,398.00   Cr     
Issue Type         Book built Issue IPO         
Listing At         BSE, NSE        
QIB Shares Offered           95.27 times        
NII (HNI) Shares         213.06 times        
Company Promoters         Ravi Kant Jaipuria, Varun Jaipuria, and RJ Corp Limited are the company promoters. 
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Devyani International Limited IPO-Tentative Dates         

Devyani International Limited IPO opening date         4 August 2021          
Devyani International Limited IPO closing date         6 August 2021        
Basis of Allotment         11 August 2021        
Initiation of Refunds         12 August 2021        
The credit of Shares to Demat        13 August 2021        
Devyani International Limited IPO Listing Date         16 August 2021        

Industry Overview.        

The quick-service restaurant channel has been rapidly growing in popularity in India, owing to factors such as a rise in literacy, exposure to media, an increase in disposable incomes, and easier and greater availability. Affordability has also been a key factor. Western fast-food chains are gaining Indian consumers by understanding consumer demands and customizing their menus to match Indian taste palates.  As a result, value sales of quick-service restaurants grew by a CAGR of 5.5% and amounted to ₹2,854.8 billion (US$40.1 billion) in 2020 from ₹2,189.2 billion (US$34.1 billion) in 2015. The number of outlets increased by 2%, while the number of transactions increased by 3.8% over the same period. Over the forecast period between 2020 and 2025, the value sales of quick-service restaurants are expected to grow at an even higher pace of 12.4%, indicating a steep rebound in these outlets post the pandemic. The year 2020 saw significant changes in the business operations of quick-service restaurants. Contactless dining experiences and takeaways were adopted by restaurants, with the help of technology. For instance, Pizza Hut, when it opened restaurants during the ‘unlock’ phase of the pandemic, enabled consumers to order using QR codes on their tables, through which they could order online. The channel is also focused on modifying its menus according to changing global trends and Indian eating habits. 

Company Overview         

Devyani International Ltd is the largest franchisee of Yum Brands in India and are among the largest operators of chain quick service restaurants (“QSR”) in India, on a non-exclusive basis, and operate 655 stores across 155 cities in India, as of March 31, 2021. Yum! Brands Inc. operates brands such as KFC, Pizza Hut, and Taco Bell brands and has a presence globally with more than 50,000 restaurants in over 150 countries, as of December 31, 20201. In addition, also has a franchisee for the Costa Coffee brand and stores in India. The 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 are referred to as “Core Brands”, and such businesses in India are 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 the brands such as Vango and  Food  Street  (“Other  Business”).  Revenue from the Core Brands Business, together with the International Business, represented 83.01%, 82.94%, and 94.19% of the revenue from operations in Fiscals 2019, 2020, and 2021, respectively 

Devyani International Limited IPO-Objectives         

  • Repayment and/or prepayment of company’s borrowings fully or partially. 
  • General corporate purposes. 

Devyani International Limited IPO – Financial Statements        

Particulars        31-Mar-21      31-Mar-20      31-Mar-19      
Total Assets        16,684.07 18,835.76 18,074.90 
Total Revenue        11,988.95 15,350.41 13,236.83 
Profit After Tax        629.87 1,214.18  941.44 

Devyani International Limited IPO Strengths        

  • The product portfolio of well-recognized QSR brands. 
  • Largest franchisee of Yum Brands in India. 
  • Cross-brand synergies provide operating leverage benefits. 
  • Disciplined financial approach with a strong focus on cash flow management. 
  • Strong store network; 264 KFC Stores, 297 Pizza Hut stores, and 44 Costa coffee stores. 

Devyani International Limited IPO Weakness         

  • Dependency on the global success and reputation of its core brands 
  • Inability to identify suitable store locations could impact its growth strategy. 
  • Incurred losses in the last 3 financial years. 

Company Contact Information

Devyani International Limited
F-2/7, Okhla Industrial Area,
Phase-I, New Delhi 110 020

Phone: 011 4170 6720

Devyani International IPO Registrar

Link Intime India Private Ltd

Phone: +91-22-4918 6270

Devyani International IPO Lead Manager(s)

  1. CLSA India Private Limited 
  2. Edelweiss Financial Services Ltd 
  3. Kotak Mahindra Capital Company Limited 


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