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KFC, Pizza Hut, & Costa Coffee Franchisor, Devyani International Limited to Launch Its Initial Public Offer on August

News Desk, News Nation 360 : Devyani International Limited (the “Company”), the largest franchisee of Yum Brands in India, and among the largest operators of chain quick-service restaurants (“QSR”) in India (Source: Global Data Report), on a non-exclusive basis, operates Pizza Hut, KFC, and Costa Coffee stores, as well as stores of other brands such as Vaango, Food Street, Masala Twist, Ile Bar, Amreli and Ckrussh Juice Bar, is proposing to open the Bid/Offer Period in relation to its initial public offering of Equity Shares (the “Offer”) on Wednesday, August 4, 2021. The Bid/Offer Period will close on Friday, August 6, 2021. The Price Band for the Offer has been fixed at Rs. 86 – Rs. 90 per Equity Share. The IPO comprises fresh issuance of Equity Shares aggregating to Rs. 4,400 million by the Company (“Fresh Issue”) and an offer for sale of up to 155,333,330 Equity Shares by the selling shareholders, namely, Dunearn Investments (Mauritius) Pte. Ltd. (the “Investor Selling Shareholder”), and the promoter selling shareholder, RJ Corp Limited (the “Promoter Selling Shareholder” and together with the Investor Selling Shareholder, the “Selling Shareholders” and such offering of Equity Shares by the Selling Shareholders, the “Offer for Sale”). The Offer includes a reservation of up to 550,000 Equity Shares for subscription by Eligible Employees of the Company (the “Employee Reservation Portion”). The Offer less the Employee Reservation Portion is referred to as the “Net Offer”. The Company and the Selling Shareholders, may in consultation with the Lead Managers, consider participation by Anchor Investors in accordance with the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, as amended (the “SEBI ICDR Regulations”). The Anchor Investor Bid/Offer Period shall be one Working Day prior to the Bid/Offer Opening Date. The Offer is being made through the Book Building Process, in terms of Rule 19(2)(b) of the Securities Contracts (Regulation) Rules, 1957, as amended (“SCRR”) read with Regulation 31 of the SEBI ICDR Regulations and in compliance with Regulation 6(2) of the SEBI ICDR Regulations, wherein not less than 75 % of the Net Offer shall be allocated on a proportionate basis to Qualified Institutional Buyers (“QIBs”, the “QIB Portion”), provided that our Company and the Selling Shareholders may, in consultation with the Lead Managers, allocate up to 60% of the QIB Portion to Anchor Investors on a discretionary basis in accordance with the SEBI ICDR Regulations (“Anchor Investor Portion”), of which one-third shall be reserved for domestic Mutual Funds, subject to valid Bids being received from domestic Mutual Funds at or above the Anchor Investor Allocation Price. Further, 5% of the QIB Portion (excluding Anchor Investor Portion) (“Net QIB Portion”) shall be available for allocation on a proportionate basis only to Mutual Funds, and the remainder of the Net QIB Portion shall be available for allocation on a proportionate basis to all QIBs, including Mutual Funds, subject to valid Bids being received at or above the Offer Price. However, if the aggregate demand from Mutual Funds is less than 5% of the Net QIB Portion, the balance Equity Shares available for allocation in the Mutual Fund Portion will be added to the remaining Net QIB Portion for proportionate allocation to QIBs. The Company proposes to utilise the Net Proceeds towards (i) repayment/prepayment of all or certain of the Company’s borrowings; and (ii) general corporate purposes.

Report : Anustup Kundu