First QSR player, Devyani International files for IPO of Rs1400cr

Devyani International, the largest franchisee of Yum Brands, operating core brands such as Pizza Hut, KFC, Costa Coffee in addition to its own brands such as Vaango, Food Street, Masala Twist, Ile Bar, Amreli and Ckrussh Juice Bar having 692 stores in 26 states across 155 cities in India, as well as internationally in Nepal and Nigeria, have filed their papers with the regulator to raise approx. 1400cr according to market sources.

As stated in the DRHP, the initial public offer aims to increase Rs400cr through the issuance of new equity shares and a sale offer of up to 125,333,330 equity shares by a selling shareholder, Dunearn Investments (Mauritus) Pte. Ltd, a wholly-owned subsidiary of Temasek Holdings and Promoter Selling Shareholders, RJ Corp Ltd.

DIL started its relationship with Yum in 1997 with its first Pizza Hut store in Jaipur, it is also a franchisee of the Costa Coffee brand and currently operates 297 Pizza Hut stores, 264 KFC stores and 44 Costa Coffee as of March 31, 2021 in India. . Between March 2019 and 2021, the main brand stores saw a CAGR growth of 13.58% from 469 stores to 605 stores and the company attributes its success and continued growth efforts to its 9,356 employees.

The company is led by Ravi Kant Jaipuria, promoter, RJ Corp and Virag Joshi, president and CEO, who has been a key strategist in the company’s expansion efforts in addition to the management team consisting of Manish Dawar , director of Wholetime and chief financial officer. , Rajat Luthra, CEO – KFC and Amitabh Negi, CEO – Pizza Hut.

Devyani is the largest QSR company in India to be listed on Swiggy and was one of the largest QSR companies in India to be listed on the Zomato platform in 2019 and 2020. The value of QSR industry sales are increasing at a CAGR of 12.4% between 2020 and 2025.

During fiscal year 21, Devyani’s activity of the main brands (India and internationally) represented 94.19% of its operating revenues and delivery sales represented 70.20% of said revenues, an increase from 51.15% in FY20.

Despite the pandemic, it has continued to expand its store network and has opened 109 stores in its core brand business in the past 6 months. KFC and Pizza Hut were among the first to roll out contactless delivery in May 2020 and June 2020, respectively.

The investment bankers appointed for the issue are Kotak Mahindra Capital Company Ltd, CLSA India Pvt Ltd, Edelweiss Financial Services Ltd, Motilal Oswal Investment Advisors Ltd.

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