KFC, Pizza Hut operator Devyani Global receives Sebi nod for IPO

Mumbai: Devyani Global, the largest franchisee of Yum Brands in India, has got market regulator Sebi's nod for its proposed initial public offer (IPO).

The IPO would comprise of a unique discipline of Rs 400 crore and a proposal for sale of as a lot as 12,53,33,330 shares by a completely-owned subsidiary of Temasek Holdings (Dunearn Investments Mauritius Pte) and RJ Corp. As per sources, the IPO size would be about Rs 1,400 crore.

Devyani Global, which operates core brands equivalent to Pizza Hut, KFC, Costa Coffee along with its have brands equivalent to Vango and Meals Twin carriageway, had filed its draft papers with Sebi on Would possibly well per chance honest 19.

The QSR company has 692 stores in 26 states across 155 cities in India, Nepal and Nigeria.

Devyani opened its first Pizza Hut retailer in Jaipur in association with Yum. It operated 297 Pizza Hut stores, 264 KFC stores and 44 Costa Coffee stores as on March 31, 2021 in India. Between March 2019 and March 2021, the core model stores seen a CAGR enhance of 13.58 per cent from 469 stores to 605 stores and the corporate attributes its success and genuine enhance effort to its 9,356 employees.

Devyani is the one largest QSR company in India to be listed on Swiggy and was amongst the largest QSR firms in India to be listed on the Zomato platform in 2019 and 2020.

As per some estimates, the QSR substitute is viewed rising at a compounded annual enhance price of 12.4 per cent over 2020-2025. In FY21, Devyani’s substitute from the core brands (India & internationally) accounted for 94.19 per cent of its revenues from operations and transport gross sales represented 70.20 per cent of the acknowledged revenues, an amplify from 51.15 per cent in FY20.

An organization press release claims that Devyani opened 109 stores across its core model substitute in the final six months. KFC and Pizza Hut were amongst the earliest to roll out contactless transport in Would possibly well per chance honest 2020 and June 2020, respectively.

Kotak Mahindra Capital Company, CLSA India,

and Motilal Oswal Funding Advisors are funding bankers appointed to the subject.