Devyani International Ltd IPO
IPO Subscription Details
Devyani International Ltd IPO Subscription Status
Devyani International IPO Subscription Status
|Qualified Institutional (QIB)||1.32 Times|
|Non-Institutional (NII)||6.68 Times|
|Retail Individual||23.16 Times|
Devyani International IPO Subscription Details (Day by Day)
|August 04, 2021 17:00||0.77x||0.77x||11.37x||1.56x||2.69x|
|August 05, 2021 17:00||1.32x||6.68x||23.16x||3.12x||6.73x|
Devyani International IPO Synopsis
Devyani International Limited, the largest franchisor of leading food brands like KFC, Pizza Hut, & Costa Coffee is all set to launch its Initial Public Offer on August 4, 2021. Devyani International IPO price brand is at Rs.86-90 per equity share and the lot size is going to be 165 shares. Hence if you would like to invest in Devyani International IPO you will have to make a minimum investment of Rs.14,190.
Fresh Issue of Equity Shares aggregating up to ₹440 Crore and Offer for sale of up to 155,333,330 Equity Shares.
The Company proposes to utilise the Net Proceeds towards the following objects:
1 Repayment/prepayment of all or certain of our borrowings; and
2. General corporate purposes
About Devyani International Ltd
It is largest franchisee of Yum Brands in India and are among the largest operators of chain quick service restaurants (“QSR”) in India (Source: Global Data Report), on a non-exclusive basis, and operate 655 stores across 155 cities in India, as of March 31, 2021. Yum! Brands Inc. operates brands such as KFC, Pizza Hut and Taco Bell brands and has presence globally with more than 50,000 restaurants in over 150 countries, as of December 31, 20201. In addition, the company has a franchisee for the Costa Coffee brand and stores in India. The business is broadly classified into three verticals that includes stores of KFC, Pizza Hut and Costa Coffee operated in India.
Devyani International Limited (DIL) is the largest franchisee of Yum Brands in India and among the largest operators of chain quick service restaurants (“QSR”) in India (Source: GlobalData Report), on a non-exclusive basis, and operate 655 stores across 155 cities in India, as of March 31, 2021, and 696 stores across 166 cities in India, as of June 30, 2021.
Yum! Brands Inc. operates brands such as KFC, Pizza Hut and Taco Bell brands and has presence globally with more than 50,000 restaurants in over 150 countries, as of December 31, 2020. In addition, DIL has a franchisee for the Costa Coffee brand and stores in India. The company’s business is broadly classified into three verticals that includes stores of KFC, Pizza Hut and Costa Coffee operated in India (KFC, Pizza Hut and Costa Coffee referred to as “Core Brands”, and such business in India referred to as the “Core Brands Business”); stores operated outside India primarily comprising KFC and Pizza Hut stores operated in Nepal and Nigeria (“International Business”); and certain other operations in the F&B industry, including stores of DIL own brands such as Vaango and Food Street (“Other Business”).
Revenue from our Core Brands Business, together with our International Business, represented 83.01%, 82.94% and 94.19% of the company’s revenue from operations in Fiscals 2019, 2020 and 2021, respectively.
Devyani International Ltd Financial Status
Particulars (in crore)
Revenue from operations
Some of the competitive strengths are as follows -
Portfolio of highly recognized global brands catering to a range of customer preferences:
DIL operates franchises of several highly recognized global QSR brands and is the largest franchise partner for Yum in India. Their Core Brands include:
• KFC, a global chicken restaurant brand with over 25,000 restaurants in over 140 countries, as of December 31, 2020;
• Pizza Hut, the largest restaurant chain in the world specializing in the sale of ready-to-eat pizza products. Pizza Hut operates in the delivery, carryout and casual dining segments around the world with 17,639 restaurants, as of December 31, 2020;
• Costa Coffee, a global coffee shop chain with over 3,400 coffee shops in 31 countries.
Their Core Brands Business as well as their Other Business offers a range of full and limited-service dining experiences not only in terms of cuisine, that includes a variety of offerings such as burgers, pizza, south-Indian food and street food, but also in terms of the format of offerings including dine-in, cafés, take-away, delivery, and drive thrus. They serve a wide range of customers across various price points.
Presence across key consumption markets with a cluster-based approach:
The company operates 696 stores across all brands and were present in 26 states and 3 union territories across 166 cities in India, as of June 30, 2021. They have a strong presence in key metro regions of Delhi NCR (comprising Faridabad, Ghaziabad, Gurgaon, Delhi and Noida), Bengaluru, Kolkata, Mumbai and Hyderabad. DIL has established a standardized and scalable development model for their stores based on their know-how and experience that has led to faster and more cost-effective roll outs. Their expansion model is supported by streamlined store network planning, a robust supply chain network and an efficient staff recruitment and development program. With the cluster-based expansion approach, they have been able to addresses demand in high-potential domestic markets. The other factors they consider as part of their cluster based approach includes retail presence at a particular location and the brand recognition and recall value of their Core Brands. In assessing the expansion of their store network, they target an optimal mix across different formats, including dine-in, delivery, take-away and drive-thrus.
Distinguished Board and experienced senior management team:
The Company Board comprises individuals from various fields of finance and business with varied and diverse experience. Ravi Kant Jaipuria, one of the Promoters and Non-Executive Director on the Board, has over 3 decades of experience in conceptualizing, executing, developing and expanding food, beverages and dairy business in South Asia and Africa. The experience of their Independent Directors helps ensure transparency and accountability in their operations across diverse functional aspects and their inputs enhance quality of the operations.
Some of the risk factors are as follows
• The ongoing pandemic Covid19 will adversely impact company’s financial performance and operations because ability or desire of customers to dine in stores, is likely to be uncertain.
• The company rely on arrangements with Yum for our KFC and Pizza Hut stores that comprise a significant majority of DIL business, and a termination of or inability to renew these arrangements, will have a material adverse effect on company’s business and financial performance.
• DIL has incurred losses in Fiscals 2019, 2020 and 2021, resulting in erosion of company’s net worth. In the event DIL net loss continues to increase, it may adversely affect the business and financial condition.
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Contact Details of Devyani International Ltd IPO
Devyani International Limited
F-2/7, Okhla Industrial Area,
Phase-I, New Delhi 110 020
Phone: 011 4170 6720
Devyani International Ltd IPO Register
Link Intime India Private Ltd
Link Intime India Private Ltd
C 101, 247 Park, L.B.S.Marg,
Vikhroli (West), Mumbai - 400083
Phone: +91-22-4918 6270
Devyani International Ltd IPO Lead Manager
Kotak Mahindra Capital Company Limited
CLSA India Private Limited
Edelweiss Financial Services Limited
Motilal Oswal Investment Advisors Limited