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Updated August 4th, 2021 at 14:10 IST

Devyani Int IPO subscription opens today: Check KFC operator's issue price, GMP & more

Devyani Int IPO, the world's largest franchisee of Pizza Hut, KFC, and Costa Coffee, has started accepting subscriptions for its initial public offering.

Reported by: Srishti Goel
devyani int ipo
Picture Credit: dil-rjcorp.com/RepresentativeImage  | Image:self
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Devyani International, the world's largest franchisee of Pizza Hut, KFC, and Costa Coffee, has opened its initial public offering (IPO) for subscription today. The initial share sale price band has been set at 86-90 per share, and the issue will close on August 6. The retail component of the auction had been completely subscribed at 3.77 times as of 11:40 a.m. on the first day of bidding. According to BSE data, the whole issue has been subscribed 0.70 times, with the non-institutional investors (NII) category having been subscribed 0.07 times.

 Devyani International IPO Opens today

Market experts remarked that Devyani International shares are offered in the grey market for a premium (GMP) of 63. The company's shares will be traded on the BSE and NSE.

Angel Broking said in a note, "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. Thus, we recommend a subscribe rating on the issue."

The IPO of the quick service restaurant (QSR) company consists of a 440 crore fresh issuance and a 155.33 million share offer for sale (OFS) by shareholders and promoters.

KFC-Pizza Hut operator Devyani Int. IPO

Devyani has a strong portfolio of globally known brands that appeal to a variety of customer tastes, so it is well-positioned to benefit from growing market trends. The company's financial performance has been mediocre, and the pandemic has harmed it much more in FY21. The corporation does, however, seek to increase unit performance, which will help improve margins. Investors may subscribe for listing gains given present market sentiments,' according to Religare Broking.

The issue's investment bankers are Kotak Mahindra Capital Company Ltd, CLSA India Pvt Ltd, Edelweiss Financial Services Ltd, and Motilal Oswal Investment Advisors Ltd. The proceeds of the offering will be used to repay some or all of the firm's debts.

Devyani International (DIL) is the largest Yum Brands franchisee in India and, on a non-exclusive basis, one of the largest chain operators of quick-service restaurants (QSR) in India, with 696 outlets in 166 cities as of June 30, 2021. Yum! Brands Inc. owns and operates KFC, Pizza Hut, and Taco Bell, and as of December 31, 2020, it had more than 50,000 stores in over 150 countries.

Picture Credit: dil-rjcorp.com/RepresentativeImage 

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Published August 4th, 2021 at 14:10 IST

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