Pizza Hut, KFC operator Devyani International IPO to open on August 4, fixes IPO price band at Rs 86-90

On the block is a fresh issue of shares aggregating Rs 440 crore and an offer for sale (OFS) of up to 15.53 crore shares.

Devyani is the single largest quick-service restaurant (QSR) company in India to be listed on Swiggy and was among the largest QSR companies in India to be listed on the Zomato platform in 2019 and 2020.

In FY21, Devyani’s business from the core brands (India and Internationally) accounted for 94.19 per cent of its revenues from operations. Delivery sales represented 70.20 per cent of revenues in FY21 compared with 51.15 per cent in FY20.

The company has opened 109 stores across its core brand business in the last six months. KFC and Pizza Hut were among the earliest to roll out contactless delivery in May 2020 and June 2020, the company in a recent press release said.

The company also owns 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.

The company commenced its relationship with Yum in 1997 with its first Pizza Hut store in Jaipur. It currently operates 297 Pizza Hut stores, 264 KFC stores and 44 Costa Coffee as on March 31.

Between March 2019 and 2021, the core brand stores saw a CAGR growth of 13.58 per cent from 469 stores to 605 stores and the company attributes its success and continuous growth effort to its 9,356 employees.

It is expected that the sale value of the QSR industry will grow at a CAGR of 12.4 per cent over 2020-2025. The company had filed its draft papers with Sebi on May 19.

Kotak Mahindra Capital Company, CLSA India,

and Motilal Oswal Investment Advisors are the investment bankers appointed to the issue.