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QSR Player Devyani International gets SEBI Approval for IPO

News Desk, News Nation 360 : Devyani International, 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 has 692 stores in 26 states across 155 cities in India, as well as, internationally in Nepal and Nigeria has received market regulator Securities and Exchange Board of India’s (SEBI) nod for the Initial Public Offering (IPO) route. The company had filed its DRHP with SEBI on May 19, 2021. DIL commenced its relationship with Yum in 1997 with its first Pizza Hut store in Jaipur, it’s also a franchisee of the Costa Coffee brand and currently operates 297 Pizza Hut stores, 264 KFC stores and 44 Costa Coffee as of March 31, 2021, in India. Between March 2019-2021, the core brand stores saw a CAGR growth of 13.58% from 469 stores to 605 stores and the company attributes its success and continuous growth effort to its 9,356 employees. As stated in the DRHP, the Initial Public Offering looks to raise Rs 400 CRS via issuance of fresh equity shares and an Offer of Sale of up to 125,333,330 equity shares by Investor Selling Shareholder, Dunearn Investments (Mauritius) Pte. Ltd, a wholly-owned subsidiary of Temasek Holdings and Promoter Selling Shareholders, RJ Corp Ltd. As per the market sources the company plans to raise Rs 1400 Cr. Devyani is the single largest QSR company in India to be listed on Swiggy and was amongst the largest QSR company in India be to listed on the Zomato platform in 2019 and 2020. It is expected that the sale value of the QSR industry will grow at a CAGR of 12.4% between 2020 – 2025. In FY21 Devyani’s business from the core brands (India & 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.

Report : Anustup Kundu