Devyani International Limited IPO: Issue subscribed 116.71 times, retail portion booked 39.51 times

Initial public offering by Devyani International, which operates Pizza Hut, KFC, and Costa Coffee stores, as well as stores of other brands such as Vaango, Food Street, Masala Twist, Ile Bar, Amreli and Ckrussh Juice Bar, was subscribed 116.71 times on the final day of the bidding process on August 6. The public offer received bids of 13,13,77,99,700 shares against the offered 11,25,69,719 equity shares. The portion reserved for retail investors was subscribed 39.51 times. While the qualified institutional buyer category was subscribed 95.27 times, the non-institutional investor category was subscribed 213.06 times and employee reserved category was subscribed 4.70 times.

The IPO comprised a fresh issuance of equity shares aggregating to Rs 440 cr by the company and an offer for sale of up to 155,333,330 equity shares by the selling shareholders and promotors. The price band for the offer was fixed at Rs 86-Rs. 90 per equity share.

Key brokerage houses like Angel Broking, Prabhudas Liladhar, Nirmal Bang, ICICI Direct HEM Securities have given recommendations of “Subscribe” to the issue for long term perspective while highlighting the key strengths of the company

The Indian QSR industry has grown at a CAGR of 3% in the last five years to US$40 billion (bn) in 2020. Further, it is likely to grow at a higher rate of ~10% to become ~US$65 bn industry by 2025. Rapid growth in QSR will be aided by increased urbanisation supported by a younger population with rising income levels and excess disposable income. Also, QSR is expected to experience a rise in number of transactions and average transaction amount due to the short service time at an affordable price offered by QSR.

Kotak Mahindra Capital Company Ltd, CLSA India Pvt Ltd, Edelweiss Financial Services Ltd, Motilal Oswal Investment Advisors Ltd are the BRLMs to the Offer.