Temasek Holdings sells 2.8% stake in Devyani International for Rs 500 cr via block deal; Franklin Templeton MF buys

Franklin Templeton Fund has picked up about 0.5% stake in Devyani International through a block deal on Tuesday. Franklin’s India Flexi Cap Fund has bought about 62 lakh shares in open market transaction for Rs 89 crore. The deal was executed at an average price of Rs 145 per share.

Under the block deal, Singapore’s Temasek Holdings, through its subsidiary Dunearn Investment Mauritius, has sold 2.85% equity or 3.4 crore shares in the company for Rs 499 crore. Temasek has held 5.88% in the company, as of December quarter.

The investment company held a 8.13% stake in the quick service restaurant operator at the end of the June quarter. It reduced its stake by 2% in August last year.

Devyani International is one of the largest franchisees of Yum brands such as KFC, Pizza Hut and Taco Bells in the country. In addition, the company is a franchisee for the Costa Coffee brand and stores in India.

Among the largest operators of chain quick service restaurants (QSRs), the company operates 1,177 stores across more than 225 cities in India, Nigeria and Nepal, as of December quarter.

According to shareholding patterns available with the exchanges, the promoters own the majority of the stake at 62.80%, while the rest of 37.20% is held by public shareholders.Among the public shareholders, mutual funds have a stake of about 4.52%, while foreign portfolio investors own 8.82%.

On Monday, the company’s shares closed 1.88% lower at Rs 140.70 apiece on the NSE. The stock has lost as much as 22% so far this year on a year-to-date basis.

For the December quarter, the company’s revenue grew 27% year-on-year to Rs 790 crore as it continued strong momentum in store additions. Meanwhile, PAT stood at Rs 71 crore.

According to Trendlyne data, Devyani International has an average target price of Rs 225 and the consensus estimate represents an upside of 58.62% from the current levels.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)

The investment company held a 8.13% stake in the quick service restaurant operator at the end of the June quarter. It reduced its stake by 2% in August last year.

Devyani International is one of the largest franchisees of Yum brands such as KFC, Pizza Hut and Taco Bells in the country. In addition, the company is a franchisee for the Costa Coffee brand and stores in India.

Among the largest operators of chain quick service restaurants (QSRs), the company operates 1,177 stores across more than 225 cities in India, Nigeria and Nepal, as of December quarter.

According to shareholding patterns available with the exchanges, the promoters own the majority of the stake at 62.80%, while the rest of 37.20% is held by public shareholders.

Among the public shareholders, mutual funds have a stake of about 4.52%, while foreign portfolio investors own 8.82%.

On Monday, the company’s shares closed 1.88% lower at Rs 140.70 apiece on the NSE. The stock has lost as much as 22% so far this year on a year-to-date basis.

For the December quarter, the company’s revenue grew 27% year-on-year to Rs 790 crore as it continued strong momentum in store additions. Meanwhile, PAT stood at Rs 71 crore.

According to Trendlyne data, Devyani International has an average target price of Rs 225 and the consensus estimate represents an upside of 58.62% from the current levels.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)