Devyani International IPO : Tentative Timeline and Company Information

Devyani International is a restaurant chain and QSR chain operator. It is a franchise of YUM BRANDS. The company deals in providing fast food chains across the nation and outside India as well. Devyani International has more than 650 stores across 155 cities. The stores are under the brand name Taco Bells, KFC and Pizza Hut.

The company has 3 types of business segments under its brand name. First one is under Core Brands which are KFC, Taco Bells and Pizza Hut. Second business line is referring to the international presence of the firm. This works in the countries of Nigeria and Nepal. The company in the third segment runs some lesser known other businesses such as Food street, amreli etc.

IPO DETAILS

The Devyani International IPO is set to launch on 4th Aug, 2021. The subscription timeline extends till 6th Aug, 2021. The size for the IPO is  1838 Crore Rs. Shares issued through Offer for sale are 1398 Crore Rs. Shares worth Rs. 440 Crore are issued through Fresh issue. The minimum lot size is 165 shares and the price is set at 86 Rs. – 90 Rs./ share. The company is going to get listed at both the exchanges NSE and BSE. The face value per share is Re. 1 and this is a book built issue. The registrar for the company is Link Intime India Private Limited.

TABULAR REPRESENTATION OF IPO DETAILS

IPO OPENING DATE	4th Aug, 2021
IPO CLOSING DATE	6th Aug, 2021
ISSUE TYPE	Book Built Issue
Face Value per share	1 Re. per share
IPO price band	86 Rs. – 90 Rs.
LOT SIZE	165 shares
MINIMUM ORDER QUANTITY	165 shares
ISSUE SIZE	1838 Crore Rs.
OFFER FOR SALE	1398 Crore Rs.
FRESH ISSUE	440 Crore Rs.
LISTING AT	NSE, BSE
LISTING DATE	16th Aug, 2021

IMPORTANT DATES

IPO OPENING DATE	4th Aug, 2021
IPO CLOSING DATE	6th Aug, 2021
IPO ALLOTMENT DATE	11th Aug, 2021
REFUNDS	12th Aug, 2021
DEMAT A/C CREDITED ON	13th Aug, 2021
IPO LISTING DATE	16th Aug, 2021

The Devyani International IPO begins for subscription from 4th Aug, 2021. The IPO subscription would continue till 6th Aug, 2021. The allotment status for the shareholders who applied would come on 11th Aug, 2021. The refunds for the ones who did not get allotment would be initiated on 12th Aug, 2021. The DEMAT accounts of shareholders would be credited on 13th Aug, 2021. The listing of the company would be accompanied on 16th Aug, 2021.

PROMOTER AND LEAD MANAGERS

The promoters for the company are Varun Jaipuria, Ravi Kant Jaipuria and RJ Corp Limited.

The lead managers for the company are :

• Motilal Oswal Investment Advisors Pvt Ltd
• Kotak Mahindra Capital Company Limited
• Edelweiss Financial Services Limited
• CLSA India Private Limited

The minimum lot size for the company is decided at 165 shares. This holding accounts to 14850 Rs.. The maximum lot size is decided at 2145 shares. This amounts to Rs. 193050. Hence the company’s final holdings would be set as :

	Shares	Amount
Minimum	165 shares	14850 Rs
Maximum	2145 shares	193050 Rs

OBJECTIVES FOR THE IPO

• The money from the IPO can also be utilized to meet general corporate purposes.
• The company has large losses incurred which have resulted in high amounts of dues and borrowings. For paying off the borrowings IPO money would be used.

COMPANY FINANCIALS

Particulars (in Million Rs.)	2020-21	2019-20	2018-19
ASSETS	16684	18835	18074
REVENUE	11988	15350	13236
NET PROFIT	(813)	(787)	(592)

Devyani International has large market exposure under the QSR segment of YUM Brands. The company has an asset base for approximately 16700 Crore Rs. The assets of the company have decreased approximately 2000 Crore Rs. This has been amidst the COVID 19 breakout time. Thus the company should have high liquidity right now. However the losses of the company extended by 100 Crore Rs. This is a real trigger for investing into the company. 

Also the revenues of the coma=pany took a great hit in the last year. They were down by almost 3000 Crore Rs. This signifies that the company is reeling from heavy losses. It is also identified by the balance sheet wherein the last 3 years in the balance sheet show losses in range of 600 to 85- Crore Rs. hence the COVID has hit the company very hard on its financials. One should definitely reconsider investing by having a view on the company’s balance sheet.

PROS

• Good brands under the company.
• Largest franchise under the company YUM BRANDS.
• Under the brand there are 44 Costa Coffee stores, more than 290 Pizza Hut stores and close to 260 KFC stores.

CONS

• Company is suffering from a deep effect from the COVID 19 Pandemic.
• There have been constant losses for the company for more than 3 years.

Devyani International IPO APPLICATION PROCESS WITH ZERODHA

It is very easy to apply for an IPO now if you have a DEMAT account with Zerodha. Follow the steps below for the same :

1. Logging into Zerodha console through its website or KITE platform.
2. Clicking the IPO link present in the Portfolio section
3. Click the Devyani International IPO button and press the BID button
4. Entering the details asked for like UPI ID, Quantity and price
5. Submit the application form of IPO
6. Visiting the application of UPI for approving the transaction

Now, applying for an IPO online is possible with most of the Discount and online brokers.