Pizza Hut, KFC operator Devyani International files for Rs 1,400 crore IPO
DIL also owns brands such as Vaango, Food Street, Masala Twist, Ile Bar, Amreli and Ckrussh Juice Bar.
Devyani International (DIL), the largest franchisee of American fast-food major Yum Brands, has filed draft papers with the market regulator (Sebi) to raise around Rs 1,400 crore through initial public offerings (IPO).
As stated in the DRHP, the company looks to raise Rs 400 crore via issuance of fresh equity shares and an offer of sale of up to 125,333,330 equity shares by investor selling shareholder, Dunearn Investments (Mauritius) Pte. Ltd, a wholly-owned subsidiary of Temasek Holdings and promoter selling shareholders, RJ Corp Ltd.
DIL commenced its relationship with Yum in 1997 with its first Pizza Hut store in Jaipur, it’s also a franchisee of the Costa Coffee brand and currently operates 297 Pizza Hut stores, 264 KFC stores and 44 Costa Coffee as on March 31, 2021 in India. Between March 2019-2021 the core brand stores saw a CAGR growth of 13.58% from 469 stores to 605 stores and the company attributes its success and continuous growth effort to its 9,356 employees.
The company is led by Ravi Kant Jaipuria, promoter, RJ Corp and Virag Joshi, president and CEO, who been a key strategist to the expansion efforts by the company in addition to the management team comprising of Manish Dawar, Wholetime director and chief financial officer, Rajat Luthra, CEO – KFC and Amitabh Negi, CEO – Pizza Hut.
Devyani is the single largest QSR company in India to be listed on Swiggy and was amongst the largest QSR company in India to be listed on the Zomato platform in 2019 and 2020. It is expected that the sale value of the QSR industry will grow at a CAGR of 12.4% between 2020 – 2025
In FY21 Devyani’s business from the core brands (India and Internationally) accounted for 94.19% of its revenues from operations and delivery sales represented 70.20% of the said revenues, an increase from 51.15% in FY20.
Despite the pandemic, it has continued to expand its store network and has opened 109 stores across its core brand business in the last 6 months. KFC and Pizza Hut were amongst the earliest to roll out contactless delivery in May 2020 and June 2020, respectively.
Investment Bankers appointed to the issue are Kotak Mahindra Capital Company, CLSA India, Edelweiss Financial Services and Motilal Oswal Investment Advisors.
DIL also owns brands such as Vaango, Food Street, Masala Twist, Ile Bar, Amreli and Ckrussh Juice Bar.