Devyani International has received SEBI’s nod for its proposed initial public offering (IPO). The IPO will consist of a fresh issue of shares worth Rs 400 crore and an offer of sale of up to 12.5 crore shares. Devyani International is the largest franchisee of Yum Brands in India, besides operating quick service restaurant (QSR) brands such as Pizza Hut and KFC, and its own brands Vango and Food Street.
The IPO proceeds will be utilised to retire debt and for general corporate purposes, according to draft red herring prospectus.
Devyani International is led by Ravi Kant Jaipuria, promoter of RJ Corp and Virag Joshi, President and CEO. The company’s business is broadly classified into three verticals i.e. KFC, Pizza Hut and Costa Coffee. It operated 297 Pizza Hut stores, 264 KFC stores and 44 Costa Coffee across India, as of March 2021.
Devyani International is the largest franchisee of Yum Brands, operating core brands such as Pizza Hut, KFC and Costa Coffee, as also its own brands such as Vaango, Food Street, Masala Twist, Ile Bar, Amreli and Ckrussh Juice Bar.
Kotak Mahindra Capital Company, CLSA India, Edelweiss Financial Services and Motilal Oswal Investment Advisors are the merchant bankers to the IPO.