Author: Akanksha Upadhyay

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

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

Listen to the Article (6 Minutes)

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.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

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

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

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

Listen to the Article (6 Minutes)

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.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

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)

Listen to the Article (6 Minutes)

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.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

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

Zomato shares fall nearly 6% for second consecutive session

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

Listen to the Article (6 Minutes)

Food delivery unicorn Zomato’s shares fell nearly six percent on Wednesday during early trade on the BSE. This is the second session Zomato saw its shares plummet after registering solid gains for two earlier consecutive sessions.

The online food delivery giant’s shares surged as much as 13 percent on the BSE on Monday, hitting an intraday high of Rs 143 per share after a bumper listing on July 23. It was up over three percent in early trade on Tuesday but fell later due to overall market weakness.

Zomato made a stellar debut on bourses on July 23, listing at Rs 116 on the NSE, garnering a 52.63 percent premium over its issue price of Rs 76 per share. On BSE, the unicorn got listed at 115, a premium of 51.32 percent.

ALSO READ: Bottomline: Zomato, and that missed the bus feeling

The Rs 9,375-crore initial public offering (IPO) of Zomato witnessed strong interest from investors as the issue was subscribed 38.25 times during July 14-16. The offer received bids for 2,751.27 crore equity shares against the IPO size of 71.92 crore equity shares.

Zomato entered the exclusive club of top 50 companies in terms of market capitalization after listing. The market cap of the food-tech startup stands at Rs 1,00,222 crores, nearly 50 percent higher than its market cap at the issue price which stood at Rs 65,000 crore – at the issue price of Rs 76.

Analysts believe the company has certain positivities like asset-light scalable business model, expanded target market post the pandemic, first-mover advantage in the food delivery business, etc. But its operations in an almost duopoly market may attract regulatory actions, which would be negative for the company.

Zomato is the first Indian unicorn to go public and will be followed by other startups including PayTm, Policy Bazaar, among others.

At 9:45 am, Zomato’s shares were trading 5.30 percent lower at Rs 125.85 apiece on the BSE.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

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

Rolex Rings IPO opens today: Here are the key things to know

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

Listen to the Article (6 Minutes)

Automotive components manufacturer Rolex Rings is set to make its debut in the market with its initial public offering (IPO) soon. The three-day IPO will open on July 28 and conclude on July 30.

Based in Rajkot, Gujarat, Rolex Rings is among the leading makers of forged and machine components in the country. The firm has three manufacturing plants in Rajkot.

Here are the key things to know about Rolex Rings’ IPO:

1. Rolex Rings, in consultation with merchant bankers, has fixed a price band of Rs 880-900 per equity share for the public issue.
2. The company is planning to raise Rs 716 crore at the lower price band, and Rs 731 crore at the higher end.
3. The offer will open for subscription on July 28 and will close on July 30.
4. The public issue comprises a fresh issue of Rs 56 crore and an offer for sale of 75 lakh equity shares by Rivendell PE LLC – a shareholder in the company.
5. Investors can bid for a minimum of 16 equity shares and in multiples of 16 after that. The minimum investment amount for 13 lots at the higher price band of Rs 900 per share is Rs 14,400, and the maximum investment amount is Rs 1,87,200. The maximum amount that a retail investor can invest is Rs two lakh.
6. The issue contains a 50 percent allocation for the Qualified Institutional Buyers (QIBs), 15 percent is reserved for the Non-Institutional Investors (NIIs) quota, and a 35% reservation for the Retail segment.
7. The Basis of Allotment will likely be on August 4, while the refunds will be on the following day, August 5 and shares will be credited to Demat accounts on August 6. The tentative listing day for the IPO stands as of August 9.
8. The net proceeds from the IPO will go towards the long-term working capital requirements of the company as well as general corporate purposes.
9. The promoters of Rolex Rings’ IPO are Rupesh Dayashankar Madeka, Jiten Dayashankar Madeka, Manesh Dayashankar Madeka, Pinakin Dayashankar Madeka, and Bhautik Dayashankar Madeka.
10. Equirus Capital, IDBI Capital Markets & Securities, and JM Financial are the book-running lead managers to the offer.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

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

Adani Ports dips 2% after Nordic fund divests from Myanmar project

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

Listen to the Article (6 Minutes)

Shares of Adani Ports and Special Economic Zones’ (APSEZ) fell more than two percent intraday on Wednesday after Norway’s largest pension fund, KLP, decided to divest from its Myanmar project.

KLP, a Norwegian pension fund, announced on Tuesday that it is divesting from APSEZ because the company’s ties to the Myanmar military violate the fund’s responsible investment policy. KLP has a $1.05 million investment in APSEZ.

Adani Ports has been under scrutiny about its plan to develop a container terminal in Yangon on property leased from a Myanmar military-owned business.

There have been international criticism and sanctions against Myanmar following a military coup on February 1 and a subsequent crackdown on huge protests that resulted in the deaths of hundreds of people.

According to KPL, the military forces might use the port to import weapons and equipment or as a naval base, resulting in continued human rights violations.

Adani denounced the violence in Myanmar and violations of its people’s fundamental rights and said that when the deal was struck in 2019, its counterparties were democratically-elected government bodies.

Adani also reaffirmed that if the project is deemed to violate US sanctions, it may leave it and write down the investment.

At 12 pm, shares of Adani Ports were trading 0.94 percent lower at Rs 735.95 apiece on the BSE.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

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

Hero MotoCorp gains over 3%; co to raise prices from July 1

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

Listen to the Article (6 Minutes)

Hero MotoCorp shares jumped over 3 percent on Wednesday, as the country’s largest two-wheeler manufacturer said it will raise prices by up to Rs 3,000 from July 1 due to rising raw material costs.

Hero MotoCorp shares hit an intraday high of Rs 2,907 apiece on Nifty, leading the pack of gainers on the broader NSE index. The broader 50-share NSE Nifty was up 90 points, or 0.57 percent, to start at 15,862.

The auto major announced that it will increase the prices of its motorcycles and scooters by up to Rs 3,000 as a result of a sustained rise in prices of commodities like steel, copper, and others from July 1.

“The price hike has been necessitated to partially offset the impact of continuous increase in commodity prices. The company continues to drive cost savings programmes aggressively, to minimise the impact on the customer,” the company said in a stock exchange filing.

The price hike across the range of motorcycles and scooters will be up to Rs 3,000, and the exact quantum of the increase will depend based on the model and the specific market, Hero said.

Hero Moto is not alone in passing on the impact of additional cost to customers. Earlier, Maruti Suzuki, India’s largest car manufacturer also announced that it will increase the prices of its cars from July by up to Rs 34,000 depending on the model and ranges.

Hero MotoCorp posted a 44 percent increase in consolidated net profit to Rs 885.28 crore for the fourth quarter ended March 31, on the back of strong sales.

At 10 am, the shares of Hero MotoCorp were trading 2.47 percent higher at Rs 2,978.75 apiece on the BSE. The Nifty Auto, meanwhile, gained almost a percent, trading at 10,648, rising by 107 points.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

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