Pizza Hut, KFC and Costa Coffee operator -Devyani International – filed initial public offering (IPO) papers with capital market regulator Securities and Exchange Board of India (SEBI) to raise Rs 1,400 crore through share sale via IPO. The IPO consists of fresh issue of equity shares worth Rs 400 crore and an offer of sale of up to 12.5 crore 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 6.5 crore shares and promoter RJ Corp will offer 6 crore shares, it added.
Proceeds from the fresh issue will be used to retire debt and general corporate purposes.
Devyani International 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.
It 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.
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.
Devyani International’s filing for IPO comes days after food delivery service provider Zomato filed papers for IPO. Zomato, backed by China’s Ant Group, filed for an IPO of up to Rs 8,250 crore as consumers increasingly turn to ordering food online during the COVID-19 pandemic.