KFC, Pizza Hut operator DIL files for Rs 1,400 crore IPO

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Devyani International, the largest franchisee operator of global restaurant chains Pizza Hut, KFC and Costa Coffee, has filed for an initial public offering to raise close to Rs 1,400 crore, joining the quick service restaurant (QSR) listing wave.

Investment Bankers appointed to the issue are Kotak Mahindra Capital Company, CLSA India, Edelweiss Financial Services and Motilal Oswal Investment Advisors, two executives aware of the development said.

This would be the third QSR chain going ahead with an IPO in recent months after Burger King and Barbecue Nation. Packaged foods and condiments maker Mrs Bector’s Food Specialities also debuted its listing on the stock market in December 2020.

RJ Corp group promoted Devyani International (DIL) operates 692 stores of global restaurant chain Yum Brands owned KFC and Pizza Hut, British cafe Costa Coffee, and its own brands including Vaango and Food Street.

has an operation footprint across 155 cities in India, besides operations in Nepal and Nigeria. RJ Corp is also among the world’s largest bottlers for beverage maker PepsiCo.

According to the executives mentioned above, the Initial Public Offering is looking to raise Rs 400 crore via issuance of fresh equity shares and an offer of sale of upto 125,333,330 equity shares by Investor Selling Shareholder, Dunearn Investments (Mauritus) Pte Ltd, a wholly owned subsidiary of Temasek Holdings and Promoter Selling Shareholders, RJ Corp Ltd.

Between March 2019-2021, DIL’s core brand stores grew at a compound average growth rate of 13.58%.

In FY21, DIL’s business from its core brands (India and internationally) accounted for 94.19% of its revenues from operations and delivery sales represented 70.20% of the said revenues, an increase from 51.15% in FY20, an executive directly aware of the details said.

DIL, the largest franchisee of Yum Brands, opened 109 stores across its core brands in the last six months, despite the pandemic.

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