Devyani International Limited (the "Company"), the largest franchisee of Yum Brands in India, and among the largest operators of chain quick service restaurants ("QSR") in India (Source: Global Data Report), on a non-exclusive basis, operates Pizza Hut, KFC, and Costa Coffee stores, as well as stores of other brands such as Vaango, Food Street, Masala Twist, Ile Bar, Amreli and Ckrussh Juice Bar received bids of 13,13,77,99,700 shares against the offered 11,25,69,719 equity shares.
The portion reserved for retail investors was subscribed 39.51 times. While the Qualified Institutional Buyer category was subscribed 95.27 times, the Non-Institutional Investor category was subscribed 213.06 times and Employee Reserved category was subscribed 4.70 times.
The Initial Public Offering comprised of a fresh issuance of Equity Shares aggregating to Rs. 440 cr by the Company ("Fresh Issue") and an offer for sale of up to 155,333,330 Equity Shares by the selling shareholders and promotors. The Price Band for the Offer was fixed at Rs. 86 - Rs. 90 per Equity Share.
Key brokerage houses like Angel Broking, Prabhudas Liladhar, Nirmal Bang, ICICI Direct HEM Securities have given recommendations of "Subscribe" to the issue for long term perspective while highlighting the key strengths of the company.
The Indian QSR industry has grown at a CAGR of 3% in the last five years to US$40 billion (bn) in 2020. Further, it is likely to grow at a higher rate of ~10% to become ~US$65 bn industry by 2025. Rapid growth in QSR will be aided by increased urbanisation supported by a younger population with rising income levels and excess disposable income. Also, QSR is expected to experience a rise in number of transactions and average transaction amount due to the short service time at an affordable price offered by QSR.
DIL would be able to capture the growth owing to metro lifestyle and outside food habits. This, coupled with the company's cost rationalization initiatives will help drive profitability in future.
Kotak Mahindra Capital Company Ltd, CLSA India Pvt Ltd, Edelweiss Financial Services Ltd, Motilal Oswal Investment Advisors Ltd are the BRLMs to the Offer.
Devyani International Limited is the largest franchisee of Yum Brands in India and are among the largest operators of chain quick service restaurants ("QSR") in India (Source: Global Data Report), 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 presence globally with more than 50,000 restaurants in over 150 countries, as of December 31, 20201. In addition Devyani International Limited is the franchisee for the Costa Coffee brand and stores in India.