IPO alert: Pizza Hut, KFC and Costa Coffee operator Devyani International files IPO papers

Devyani International, the largest franchisee of Pizza Hut, KFC and Costa Coffee in India, has filed preliminary papers with capital markets watchdog Sebi to raise Rs 1,400 crore through an initial share-sale.

The initial public offer (IPO) consists of fresh issue of equity shares worth Rs 400 crore and an offer of sale of up to 125,333,330 equity shares by promoter and existing shareholder, according to draft red herring prospectus.

Under the offer for sale, Dunearn Investments (Mauritius) Pte Ltd, a wholly-owned subsidiary of Temasek Holdings, will sell 65,333,330 shares and promoter RJ Corp will offer 6 crore shares, it added.

According to merchant banking sources, the IPO is expected to fetch Rs 1,400 crore. Proceeds from the fresh issue will be used to retire debt and general corporate purposes.

Devyani International is an associate company of RJ Corp, the largest bottling partner of food and beverages (F&B) major Pepsico, and has interests in the Indian retail F&B sector.

The company is the largest franchisee of Yum Brands, operating core brands such as Pizza Hut, KFC, Costa Coffee besides its own brands such as Vaango, Food Street, Masala Twist, Ile Bar, Amreli and Ckrussh Juice Bar.

It operates 297 Pizza Hut stores, 264 KFC stores and 44 Costa Coffee as on March 2021 in India.

Devyani International is led by Ravi Kant Jaipuria, promoter of RJ Corp and Virag Joshi, President and CEO.

Kotak Mahindra Capital Company, CLSA India, Edelweiss Financial Services and Motilal Oswal Investment Advisors have been appointed as merchant bankers for advising the company on the IPO.

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