Devyani International IPO: Opens today; Key details investors should know before investing

Devyani International IPO: The initial public offering (IPO) of Devyani International, the operator of KFC, Pizza Hut and Costa Coffee in India, will open for subscription today, i.e., on Wednesday, August 4, 2021, at a price band of Rs 86-90 per share. The offer will be available till Friday, August 6, 2021.

Through the offer, Devyani International aims to raise Rs 1,838 crore. 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 as they are allowed to invest up to Rs 2 lakh in an IPO.

The initial public offering comprises a fresh issue worth Rs 440 crore and an offer-for-sale (OFS) of up to 155,333,330 equity shares worth Rs 1,398 crore by the promoter and existing shareholder. Under the OFS, Dunearn Investments (Mauritius) Pte Ltd, a wholly-owned subsidiary of Temasek Holdings, will sell 6,53,33,330 equity shares and promoter RJ Corp will sell 9 crore shares.

The offer includes 5.5 lakh equity shares for the company's employees. The company has reserved 75 per cent of the offer for qualified institutional buyers (QIBs), 15 per cent for non-institutional buyers and the remaining 10 per cent for retail investors.

The company will utilise the net proceeds from its fresh issue towards repayment of borrowings of around Rs 324 crore, and general corporate purposes. The offer for sale money will go to selling shareholders.

Kotak Mahindra Capital Company, CLSA India, Edelweiss Financial Services and Motilal Oswal Investment Advisors are the book running lead managers to the issue.

Besides, the company has mopped up Rs 824.87 crore from 63 anchor investors on August 3, a day before the opening of its initial public offering (IPO). The company has allocated 9,16,52,499 equity shares to the anchor investors at Rs 90 per share. The prominent investors who participated in the anchor book include names like Abu Dhabi Investment Authority, Fidelity Funds, Goldman Sachs, Government of Singapore, Monetary Authority of Singapore, NS Partners Trust, Neuberger Berman Investment, Kuwait Investment Authority Fund, Vantagetrust, Mirae Asset, Nomura Trust, Private Client Emerging Markets Portfolio, Best Investment Corporation, CLSA, Carmignac Portfolio, and Affin Hwang Select Asia Quantum Fund among others.

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. It is the largest franchisee of Yum Brands, operating core brands such as Pizza Hut, KFC, Costa Coffee besides its brands such as Vaango, Food Street, Masala Twist, Ile Bar, Amreli and Ckrussh Juice Bar.