Key Sentence:
- Devyani International’s IPO: An inquiry of Rs 1,838, open for subscription on August 4 and closed on August 6 with 116.71 times Star subscription.
KFC, Pizza Hut, and Costa Coffee Devyani International debuted on August 16. And are listed at a 56% premium on the stock exchange. It opened at Rs 141 on BSE and Rs 140.90 on the National Stock Exchange with an issue price of Rs 90 per share.
The company started its initial public offering at Rs 1,838 for signature on August 4. It ended with an excellent 116.71-fold subscription on August 6, resulting in an offer for 1,313.79 crore shares for an offering size of 11.25 crore shares.
The share reserved for institutional investors who meet the requirements is 95.25 times. The claim for non-institutional investors is 213.06 times. In comparison, for private investors, it is 39.52 times and employees 4.7 times the amount purchased.
The offering includes a new Rs 440 issue and a CZK 1,398 sale offer from Dunearn Investments and promoter RJ Corp. In addition to being used for the company’s public interest. The company will pay off its debts with the proceeds from the bond issuance.
For all the news about the Devyani International’s IPO.
All brokers have subscription ratings to the public edition of Devyani International. India’s largest Yum Brands franchisee, and, non-exclusively, to India’s largest fast-food chain (QSR) operator. The company will operate 696 stores in 166 cities in India as of June 2021.
“World-renowned brand portfolio, strong business and geographic diversification. A strong presence in key consumer areas, and increased digital acceptance provide the company with a strong growth path. A strong industry driver,” said BP Equities.
Given the proposed improvement in financial performance and future drivers of growth, intermediation has given it a long-term “subscribed” rating.
Reliance Securities also recommends that you subscribe to this issue. “The IPO is estimated at 62.8 times EV/EBITDA in FY21, and 9.9 times EV/sales in FY21. Reasonable compared to its listed partners QSR and Westlife Development (McDonald’s) and Burger King emerges,” the broker said.
The brokerage firm said, “QSR fast food culture is expected to flourish in India due to the growing working-class population and continued urbanization. We find that the QSR business model is quite impressive. As any restaurant franchise begins to generate significant returns on equity at restaurant rates above 90 percent usage, which is great for long-term investors. “