Devyani International, the single largest operator of marquee quick-service restaurants (QSR) such as KFC, Costa Coffee, and Pizza Hut, is all set to open its IPO for subscription next week on August 4. The price band of the initial share sale is set at Rs 86-90 per equity share.
The firm is looking at an issue size of around Rs 1,838 crore. It consists of a fresh issue of equity shares and an offer for sale (OFS). The fresh issue stands at Rs 440 crore, while the OFS is a lofty Rs 1,398 crore with existing shareholders selling around 15.53 crore equity shares. The issue will remain open for subscription till August 6.
Investors can bid for the issue in a bid lot of 165 equity shares and in multiples thereafter. At the higher end of the price band, the minimum investment for the IPO would be Rs 14,850 per investor. Retail investors have been allowed to apply for up to 13 lots at the upper limit.
The reservations for the IPO have been given as 75 per cent for the Qualified Institutional Buyer (QIB) provided the firm and the selling shareholders allocate up to 60 per cent of the QIB Portion to anchor investors on a discretionary basis. A further 5 per cent will be made available for Mutual Funds. The rest will be available for allocation on a proportionate basis to all QIBs, including Mutual Funds. Additionally, the Non-Institutional Investors (NIIs) will have a reservation of 15 per cent. The Retail segment’s reservation was listed at 10 per cent.
The company plans to use the funds raised through the fresh issue for repayment or prepayment of all borrowings. The rest of the funds will go towards general corporate purposes.
Kotak Mahindra Capital Company, CLSA India, Edelweiss Financial Services and Motilal Oswal Investment Advisors are the investment bankers appointed to the issue.
The firm currently operates 297 Pizza Hut stores, 264 KFC stores and 44 Costa Coffee as on March 31, 2021, in India. It was the single largest quick-service restaurant (QSR) company in India to be listed on Swiggy and was among the largest QSR companies in India to be listed on Zomato in 2019 and 2020.
Copyright©2021 Living Media India Limited. For reprint rights: Syndications Today