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New Delhi-based Devyani International Ltd (DIL), the largest franchisee of American fast-food major Yum Brands, has filed draft papers with market regulator to raise funds through an Initial Public Offering (IPO).
The company intends to raise up to ₹1,400 crore through the offering, sources close to the development said.
DIL intends to raise up to ₹400 crore through a fresh issue, and issue another 12.53 crore shares through an Offer For Sale (OFS). The shareholders offloading stake through the OFS are Dunearn Investments (Mauritus) Pte. Ltd, a wholly-owned subsidiary of Temasek Holdings, and promoter RJ Corp, according to the Draft Red Herring Prospectus (DRHP) filed with Sebi.
The price band for the offer would be decided through a book-building process, it said.
Kotak Mahindra Capital Company Ltd, CLSA India Pvt Ltd, Edelweiss Financial Services Ltd and Motilal Oswal Investment Advisors Ltd are the book running lead managers and Link Intime India is the registrar to the issue.
The company proposes to use about ₹357.83 crore to repay debt, and general corporate purposes.
DIL commenced its relationship with Yum in 1997, opening its first Pizza Hut store in Jaipur and currently operates 297 Pizza Hut stores. The company is also a franchisee of the Costa Coffee brand, with 44 Costa Coffee stores and 264 KFC stores as of March 31, 2021.
DIL owns brands such as Vaango, Food Street, Masala Twist, Ile Bar, Amreli and Ckrussh Juice Bar, and has 692 stores across 26 states in India, with presence in Nepal and Nigeria.
In FY21, DIL’s business from the core brands (India and global) accounted for 94.19 per cent of its revenues from operations and delivery sales represented 70.20 per cent of the revenues .
Despite the pandemic, the company has continued to expand its store network and has opened 109 stores across its core brand business in the last six months. KFC and Pizza Hut were among the earliest to rollout contactless delivery in May and June 2020, respectively, it said in the DRHP.
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