Tag: Devyani International IPO

Pizza Hut, KFC expanding; Costa Coffee outlets opening soon: Devyani Intl

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Devyani International Limited, the operator of quick-service restaurants chains like KFC, Pizza Hut, and Costa Coffee, is expanding, Ravi Kant Jaipuria, chairman, told CNBC-TV18.

The company made a stunning debut on Monday (Aug 16) as the stock was listed with a 56 percent premium over the issue price on the bourses. It opened at Rs 141 on the Bombay Stock Exchange (BSE) and Rs 140.90 on the National Stock Exchange (NSE), against an issue price of Rs 90 per share.

Also Read: Devyani International lists at 56% premium at Rs 141 on bourses

“In the last 6 months we have opened more than 100 stores and we hope this trajectory can continue. We are expanding mainly with KFC and Pizza Hut. And the Costa agreement has been signed, so Costa Coffee stores will start opening up also,” Jaipuria said.

According to him, most of the stores mature within one year. “In a small town, it starts maturing in the first month or two months, whereas in a mature town it takes between three and six months to mature. So it’s basically in the first year most of our stores mature so we don’t have really a long gestation period,” said Jaipuria.

The company expects recovery by end of August or early September.

“The business is reasonably back to normal and could be always better once complete lockdown is out,” said Jaipuria.

“In KFC, it has gone to 60 percent delivery and 40 percent dine-in, which we believe will come back to about 50-50 going forward and once everything becomes normal, it might reverse which is 60 percent dine-in and 40 percent delivery. Whereas in Pizza Hut, it is 90 percent delivery and most of it will remain close to 90 percent delivery,” he added.

Devyani International’s grey market premium was trading at Rs 145-147, about 60 percent more than the issue price, pointing to a healthy stock listing on the BSE and NSE.

For the entire management interview, watch the video

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Devyani makes strong debut, Windlas lists at discount: how latest IPOs fared

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Four stocks entered the listed arena on Dalal Street on Monday, with Devyani International outshining others making a strong debut as its shares listed at a premium of 57 percent over the issue price. Krsnaa Diagnostics shares started trading on stock exchanges BSE and NSE at a premium of 5-7 percent.

Out of the four stocks that debuted on August 16, Windlas Biotech’s was the only one that opened at a discount to its issue price. On NSE, the stock listed at a discount of 5 percent.

Here’s how the four stocks — Devyani, Windlas, Krsnaa and Exxaro — fared at the opening:

Read more on the listing of Devyani, Exxaro, Krsnaa and Windlas shares here

The IPO of Devyani International — the largest franchisee of Yum Brands in India — was subscribed 27 times in a three-day bidding process that concluded on August 6. The portion reserved for qualified institutional buyers (QIB) was subscribed 95.27 times, and that for non-institutional investors 213.06 times. The quota for retail individual investors saw a subscription of 39.51 times. (Read more on Pizza Hut operator’s IPO)

The public offer of Krsnaa Diagnostics was subscribed 8.56 times. The category meant for QIBs saw a subscription of 49.83 times, and that for non-institutional investors 116.30 times. The quota for retail investors was subscribed 42.04 times. (Read more on Krsnaa IPO)

Windlas Biotech’s IPO saw a subscription of 22 times. The category for QIBs was subscribed 24.40 times, and that for non-institutional investors 15.73 times. The portion reserved for retail investors saw a subscription of 24.27 times. (Read more on Windlas Biotech IPO)

Exxaro Tiles’ IPO was subscribed 23 times in the bidding process.  The portion reserved for QIBs was subscribed 13.74 times and that for non-institutional investors 2.01 times. The quota reserved for retail investors saw a 17.64 times subscription. (Read more on Exxaro IPO)

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Devyani International lists at 56% premium at Rs 141 on bourses

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Devyani International Limited, the largest franchisee of Pizza Hut, KFC and Costa Coffee in India, made a stunning debut on Monday as the stock listed with a 56 percent premium over the issue price on the bourses.

It opened at Rs 141 on the Bombay Stock Exchange (BSE) and Rs 140.90 on the National Stock Exchange (NSE), against an issue price of Rs 90 per share.

Devyani International’s Rs 1,838-crore initial public offer (IPO) garnered a stunning response from the investors when it opened for subscription earlier this month.

Also read: Devyani International IPO: Should investors subscribe? Here’s what brokerages say

The public issue was oversubscribed by 116.71 times. According to the data available at the stock exchange, investors put a bid over 1,313.79 crore shares against the total issue size of over 11.25 crore.

The portion reserved for qualified institutional buyers’ (QIB) category was subscribed 95.27 times, while that reserved for non-institutional investors (NII) was subscribed 213.06 times. Retail individual investors’ segment was booked 39.51 times. The IPO allotment was finalised last week.

Devyani International’s shares were trading at Rs 55-57 on the unofficial market prior to the listing. The company’s grey market premium was trading at Rs 145-147, about 60 percent more than the issue price,  pointing to a healthy stock listing on the BSE and NSE.

Devyani International’s public issue consisted of a fresh issue of up to Rs 440 crore and an offer for sale of up to 15,53,33,330 equity shares. The company’s IPO was priced between Rs 86-90 per share while the allotment was done at Rs 90. Devyani International had earlier mobilised Rs 825 crore from anchor investors.

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Devyani International IPO share allotment today: How to check status?

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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After the subscription for Devyani International Initial Public Offer (IPO) closed last week, bidders are now waiting for its allotment date, which will most likely take place today.

The IPO of Devyani International, the largest franchisee of Pizza Hut, KFC, and Costa Coffee in India, was subscribed a whopping 116.71 times on the closing day of the subscription last week. The Rs 1,838-crore IPO received bids for 13,13,77,91,700 shares against 11,25,69,719 shares on offer, according to an update on the NSE.

The portion reserved for qualified institutional buyers (QIB) was subscribed 95.27 times, non-institutional investors’ 213.06 times and retail individual investors’ segment 39.51 times. The IPO had a fresh issue of up to Rs 440 crore and an offer for sale of up to 15,53,33,330 equity shares. The company’s IPO was in a price range of Rs 86-90 per share.

Once the share allotment of the IPO is finalised,  the status can be checked online at either the BSE website or at the official registrar Link Intime’s website. The BSE link to check one’s share allotment status is bseindia.com/investors/appli_check.aspx.

Subscribers who want to check application status online at the official registrar Link Intime’s website can log in at the direct link — linkintime.co.in/MIPO/Ipoallotment.html.

Once allotments are out, refunds and share accreditation of the IPO are expected to take place on August 12 and 13, respectively.

In terms of the listing, a preliminary date of August 16 has been set, although it is yet to be verified.

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Devyani International IPO: Pizza Hut operator’s issue subscribed 27 times so far on final day

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The initial public offering (IPO) of Devyani International, the operator of quick-service restaurants chains like KFC, Pizza Hut, and Costa Coffee continues to receive a strong response from investors. The public issue was subscribed 27 times by 1:30 pm on Friday, the last day of bidding.

According to subscription data available on exchanges, the retail portion has been fully subscribed at 31.08 times as of 1:30 pm. The non-institutional investors (NII) category booked 51.32 times and QIBs (qualified institutional buyers) 13.55 times whereas the employees’ portion was booked 3.87 times as of now, BSE data showed.

The allotment date for Devyani International is August 11. Refunds and share accreditation are expected to take place on August 12 and 13, respectively. In terms of the listing, a preliminary date of August 16 has been set, although this has yet to be verified.

Also Read: Devyani International IPO: Pizza Hut operator to launch offering today; key things to know

Devyani International, the largest franchisee of Yum Brands in India, plans to raise Rs 1,838 crore through its public issue that comprised a fresh issue of Rs 440 crore and an offer for sale of Rs 1,398 crore by selling shareholders. The company already mopped up Rs 825 crore from anchor investors at upper price band of Rs 90 per share.

The fresh issue proceeds are going to be used for repaying of debts besides general corporate purposes.

Also Read: Devyani International IPO opens today: Should you subscribe?

In FY21, Devyani’s business from the core brands (India & internationally) – KFC, Costa Coffee & Pizza Hut – accounted for 94.19 percent of revenues from operations. Delivery sales represented 70.20 percent of revenues in FY21. Overall stores at FY21 stood at 605, up from 469 in FY19.

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Devyani International IPO subscribed 4.32 times so far on Day 2

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The Rs 1,838 crore initial public offering (IPO) by Devyani International was subscribed 4.32 times so far on Thursday, the second day of the bidding process.

According to subscription data available on exchanges, the retail portion has been fully subscribed at 17.76 times as of 1:30 pm. The non-institutional investors (NII) category booked 2.45 times and QIBs (qualified institutional buyers) 0.79 times whereas the employees’ portion was booked 1.87 times as of now, BSE data showed.

The price band for the IPO was fixed at Rs 86-90 per share. At the higher end of the issue price, the company seeks a post-listing m-cap at Rs 10,820 crore.

The offer saw a healthy demand and subscription from investors as it was fully subscribed on the first day of the bidding process.

Also Read: Devyani International IPO: Pizza Hut operator to launch offering today; key things to know

The offer had received bids for 30.26 crore equity shares against the IPO size of 11.25 crore equity shares. The IPO was scaled back from its previous size of 20.42 crore equity shares to 11.25 crore shares after the firm raised Rs 824.87 crore from anchor investors on August 3, a day before the offer launched. The company allotted 9.16 crore shares to 63 anchor investors.

The reserved portion of retail investors was subscribed a total of 11.37 times while the QIBs had subscribed to the issue a total of 0.77 times against their reserved portion.

Also Read: Devyani International IPO opens today: Should you subscribe?

The allotment date for Devyani International is August 11. Refunds and share accreditation are expected to take place on August 12 and 13, respectively. In terms of the listing, a preliminary date of August 16 has been set, although this has yet to be verified.

In FY21, Devyani’s business from the core brands (India & internationally) – KFC, Costa Coffee & Pizza Hut – accounted for 94.19 percent of revenues from operations. Delivery sales represented 70.20 percent of revenues in FY21. Overall stores at FY21 stood at 605, up from 469 in FY19.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Pizza Hut operator Devyani International IPO subscribed 33% so far on day 1

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The KFC, Pizza Hut, and Costa Coffee operator Devyani International’s initial public offering (IPO) was subscribed 33 percent so far on August 4, the first day of bidding.

According to subscription data available on exchanges, the offer has received bids for 3.71 crore equity shares against the IPO size of 11.25 crore equity shares. After raising Rs 824.87 crore from anchor investors on August 3, the IPO size was lowered to 11.25 crore equity shares from 20.42 crore equity shares.

The reserved portion for retail investors was subscribed 1.78 times, while the reserved share for employees was subscribed 11 percent.

The portion set aside for non-institutional investors saw a subscription of seven percent and qualified institutional buyers have put in bids for 1.1 lakh equity shares against their reserved portion of 6.11 crore equity shares.

Also Read: Devyani International IPO opens today: Should you subscribe?

The price band for the IPO has been fixed at Rs 86-90 per share. At the higher end of the issue price, the company seeks post-listing m-cap at Rs 10,820 crore.

The allotment date for Devyani International is August 11. Refunds and share accreditation are expected to take place on August 12 and 13, respectively. In terms of the listing, a preliminary date of August 16 has been set, although this has yet to be verified.

Also Read: Devyani International IPO: Pizza Hut operator to launch offering today; key things to know

In FY21, Devyani’s business from the core brands (India & internationally) – KFC, Costa Coffee & Pizza Hut – accounted for 94.19 per cent of revenues from operations. Delivery sales represented 70.20 per cent of revenues in FY21. Overall stores at FY21 stood at 605, up from 469 in FY19.

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Devyani International IPO: Should investors subscribe? Here’s what brokerages say

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The three-day initial public offering (IPO) of Devyani International, the largest franchisee of Pizza Hut, KFC, and Costa Coffee in India, will open for subscription today and conclude on August 6. The Rs 1,838-crore public issue comprises a fresh issue of Rs 440 crore and an offer for sale of Rs 1,398 crore.

The price band for the IPO has been fixed at Rs 86-90 per share. At the higher end of the issue price, the company seeks post-listing MCAP at Rs 10,820 crore. The company has already raised Rs 825 crore from anchor investors and the anchor book has most of the prominent foreign and domestic names.

In FY21, Devyani’s business from the core brands (India & internationally) – KFC, Costa Coffee & Pizza Hut – accounted for 94.19 per cent of revenues from operations. Delivery sales represented 70.20 per cent of revenues in FY21. Overall stores at FY21 stood at 605, up from 469 in FY19.

Also Read: Devyani International IPO: Pizza Hut operator to launch offering today; key things to know

The company reduced its loss in FY21 to Rs 62.98 crore from Rs 121.42 crore in FY20. Revenue in the same period declined to Rs 1,134.84 crore from Rs 1,516.4 crore.

Here’s what brokerages said about the Devyani International IPO:

Angel Broking

In terms of valuations, the post-issue FY2021 EV/Sales works out -9.9x to (at the upper end of the issue price band), which is low compared to peers (Jubilant Foodworks-15.4x, Burger King India -14.8x, Westlife Development – 10x). Further, Devyani International has a better operating margin compared to Westlife Development & Burger king. We believe this valuation is at reasonable levels.

The brokerage recommends a ‘subscribe’ rating on the issue.

Religare Broking

Devyani is well placed to benefit from growing industry trends as it has a strong portfolio of highly recognized global brands which cater to a range of customer preferences. The financial performance has been tepid for the company which has further got impacted in FY21 due to the pandemic. However, the company intends to improve its unit performance which would aid better margins. Considering the current market sentiments, investors may ‘subscribe’ for listing gains.

KR Choksey

Considering the performance of competition in a pandemic year, investors should look to invest in Devyani International’s IPO for listing gains as well as for the long-term opportunity it presents, according to the brokerage.

It further added that recent initiatives taken by Devyani International would help in increasing revenue however the economic recovery post-Covid-19 is key for the QSR industry.

BP Wealth

Devyani International’s strong portfolio of globally recognised brands, business, and geographical diversification, strong presence across key consumption areas, and increasing digital adoption provides a strong growth runway for the company.

Although the company has been loss-making, it is on a footprint expansion mode with strong industry triggers. On the valuation front, based on upper price band and diluted equity shares the company is valued at 9.54x Price/Sales which is reasonably priced when compared to its listed industry peers (i.e, Jubilant Foodworks- 12.9x, Burger King- 14.4x and Westlife Development- 8.81x).

Considering the expected improvement in financial performance and future growth drivers, we give a ‘subscribe’ rating for the long term.

Anand Rathi

At the upper end of the IPO price band, Devyani International Ltd. is offered at 9.5x market capitalisation /sales as per FY21 financial statement, compared to peers like Jubilant Foodworks Ltd. (15x), Westlife Development Ltd. (8.8x), Burger King India Ltd. (14x).

We believe the company remains well placed for long-term growth considering the company’s portfolio of recognised global brands catering to a range of customer preferences, cross-brand synergies, expansion of store network, and EBITDA positive earnings; we give this IPO a ‘subscribe’ rating.

Apart from Devyani, three other companies open their IPOs for subscription today – Windlas Biotech, Exxaro Tiles and Krsnaa Diagnostics.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Devyani International IPO: Pizza Hut operator to launch offering today; key things to know

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Devyani International, the largest franchisee of Pizza Hut, KFC, and Costa Coffee in India, is going to open its initial public offering (IPO) for subscription today.

Along with Devyani International, three other IPOs including that of Krsnaa Diagnostics, Windlas Biotech, and Exxaro Tiles will be launched.

Here are key things to know about Devyani International’s IPO:

1. The three-day initial public offering will open for subscription on August 4, and conclude on August 6, according to the company’s virtual press conference.
2. In consultation with merchant bankers, Devyani International has set a price range of Rs 86-90 per equity share for its public offering. At the higher end of the pricing band, the total fundraising comes to Rs 1,838 crore.
3. The IPO consists of a fresh issue of equity shares worth Rs 440 crore and an offer-for-sale of up to 155,333,330 equity shares by the promoter and existing shareholders. Under the offer-for-sale, Dunearn Investments (Mauritius) Pte Ltd, a wholly-owned subsidiary of Temasek Holdings, will offload 6,53,33,330 shares and promoter RJ Corp will sell 9 crore shares.
4. Investors can bid for a minimum of 165 equity shares and in multiples of 165 equity shares thereafter. Retail investors can invest a minimum of Rs 14,850 per lot and the maximum investment would be Rs 1,93,050 for 13 lots.
5. The company has reserved up to 75 percent of the total offer for the investment by qualified institutional buyers, 10 percent by retail investors and 15 percent by non-institutional investors.
6. The allotment date for Devyani International is August 11. Refunds and share accreditation are expected to take place on August 12 and 13, respectively. In terms of the listing, a preliminary date of August 16 has been set, although this has yet to be verified.
7. The company will utilise the net proceeds from its fresh issue towards repayment of borrowings and general corporate purposes. The offer for sale money will go to selling shareholders.

Devyani International is an associate company of RJ Corp, the largest bottling partner of food and beverages (F&B) major Pepsico, and has interests in the Indian retail F&B sector.

The company reduced its loss in FY21 to Rs 62.98 crore from Rs 121.42 crore in FY20. Revenue in the same period declined to Rs 1,134.84 crore from Rs 1,516.4 crore.Devyani International is the largest franchisee of Yum Brands, operating core brands such as Pizza Hut, KFC, Costa Coffee besides its own brands such as Vaango, Food Street, Masala Twist, among others. It currently operates 297 Pizza Hut stores, 264 KFC stores, and 44 Costa Coffee as of March 2021 in India.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow