IPO Alert : Devyani International (KFC, Pizza Hut, Taco Bell, Costa Coffee franchise)

About the company:

Devyani International Limited is the largest franchisee of Yum Brands in India which operates brands such as KFC, Pizza Hut, and Taco Bell brands and has a presence globally with more than 50,000 restaurants in over 150 countries. The company’s business is broadly classified into three verticals that include stores of KFC, Pizza Hut, and Costa Coffee and is amongst the largest operators of chain quick-service restaurants in India, operating 655 stores across 155 cities as of March 31, 2021.

The public offering comprises fresh issuance of equity shares aggregating to Rs. 400 crores and offer for sale of 12.5 crore equity shares from promoters Dunearn and RJ Corp.

Competitive strengths

  • The product portfolio of well-recognized QSR (quick-service restaurant) brands.
  • Largest franchisee of Yum Brands in India.
  • Cross brand synergies provide operating leverage benefits.
  • Disciplined financial approach with a strong focus on cash flow management.
  • Strong store network; 264 KFC Stores, 297 Pizza Hut stores, and 44 Costa coffee stores.

Financial Snapshot

Financial Year Ended Revenue (₹ Crores) PAT (₹ Crores) EPS (₹)
March 2019 13,236.83 -941.44 -0.33
March 2020 15,350.41 -1,214.18 -0.4
March 2021 11,988.95 -629.87 0.17

Objects of the Issue:

  • Repayment and/or prepayment of company’s borrowings fully or partially.
  • General corporate purposes.

Important Dates:

Issue Open Date : 4th Aug 2021 at 10 AM
Issue Close Date : 6th Aug 2021 at 5 PM
Allotment Date: 11th Aug 2021
IPO Listing Date: 16th Aug 2021

Amount needed to apply

Price Band: Rs 86 to Rs 90
Lot Quantity: 165 shares per lot
For individual retail investor, you can not apply for less than 1 lot. You can set the bid price within the band.
Amount Needed: Rs 14,850 per lot (assuming you apply for 1 lot at cut-off price of Rs 90 per share)

How to apply using Niyo Money app?

  1. You can apply for IPOs from Stocks & ETFs section within Niyo Money app. If you have not opened the Stocks & ETFs account already on Niyo Money, hurry up and open Stocks & ETFs account to access this feature.
  2. IPO application is a ASBA application using UPI mandate. You need to have an NPCI approved UPI handle which can process UPI mandate requests,

If you have the above things ready, you can apply for IPO on Issue Open Date.

Disclosure: This is not a recommendation for subscribing to the IPO. The purpose is just to educate customers on the upcoming IPO.

Further reads:

Loss loss loss loss!! That’s all I see

True but Zomato also had huge losses in its books