KFC, Pizza Hut operator Devyani International to launch IPO on August 4; check details

Devyani International Ltd (DIL), the largest franchisee of Pizza Hut, KFC, and Costa Coffee, will launch an initial public offering (IPO) on August 4 and close on August 6. The IPO includes a Rs 440 crore fresh issue as well as an offer for the sale of up to 155.33 million shares by existing shareholders and promoters, said reports. Dunearn Investments Mauritius Pte owns 65.34 million shares, while RJ Corp Ltd owns up to 90 million.

Devyani International IPO launch 

The proceeds of the offering will be used to repay some or all of the firm's debts. The total outstanding borrowings of its Company (on a consolidated level) were 541.59 crores as of June 2021, as per reports. Devyani is the single largest QSR firm in India to be listed on Swiggy and was among the top QSR companies in India to be listed on Zomato in 2019 and 2020.

Despite the pandemic, it has continued to develop its shop network, opening 109 outlets in the last six months across its core brand business. In May 2020 and June 2020, respectively, KFC and Pizza Hut were among the first to provide contactless delivery.

As of March 31, 2021, the company had 297 Pizza Hut locations, 264 KFC locations, and 44 Costa Coffee locations in India. The core brand stores grew 13.58% from 469 to 605 outlets between March 2019 and March 2021, and the firm credits its success and continued growth efforts to its 9,356 workers.

Devyani International – Stores in India and Abroad

Devyani International operates 666 retail locations in India, Nepal, and Nigeria. Despite the pandemic, the corporation has opened 109 stores across all of its major brands in the last six months. In the months of May and June 2020, respectively. Contactless delivery was first introduced by KFC and Pizza Hut. The number of stores in India: KFC – 264, Pizza Hut – 297, Costa Coffee – 44, Vaango – 26. (Source: Trade Smart)

Kotak Mahindra Capital Company Ltd, CLSA India Pvt Ltd, Edelweiss Financial Services Ltd, and Motilal Oswal Investment Advisors Ltd have been appointed as investment bankers for the Issue.

Picture Credit: dil-rjcorp.com/RepresentativeImage