Pizza Hut, KFC, Costa Coffee IPO Gets Govt Approval; Rs 1400 Cr Will Be Raised
Devyani International, which runs the Pizza Hut, KFC and Costa Coffee franchises in India has been approved by the Securities and Exchange Board of India (SEBI) to raise Rs 1,400 crore through an IPO.
SEBI has to give the nod for any company wanting to launch public issues like IPO, follow-on public offer and rights issue.
The IPO comprises fresh issue of equity shares worth Rs 400 crore and an offer of sale of up to 125,333,330 equity shares by promoter and existing shareholder.
The proceeds are expected to be utilised for retiring debt and general corporate purposes.
Kotak Mahindra Capital Company, CLSA India, Edelweiss Financial Services and Motilal Oswal Investment Advisors are investment bankers appointed to the issue.
About The Company
Devyani International is an associate company of RJ Corp, the largest bottling partner of food and beverages (F&B) major Pepsico.
It 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.
Its journey in India began in 1997 when it opened its first Pizza Hut store in Jaipur.
It presently operates 297 Pizza Hut stores, 264 KFC stores and 44 Costa Coffee outlets in India as of March 2021.
The company is the largest player in the Quick Service Restaurant (QSR) segment.
Leading The Indian QSR Industry
It is also the largest QSR company in India to be listed on Swiggy.
Sale value of the QSR industry is predicted to grow at a Compound Annual Growth Rate (CAGR) of 12.4% between 2020 and 2025.
The company has been growing strong even through the pandemic as it expanded its store network by opening 109 stores in the last 6 months.
The future is also looking bright for the QSR industry in general due to accelerated urbanisation, increased internet penetration and rising demand for delivered food, especially western fast food.
At the top of the company is Ravi Kant Jaipuria, promoter of RJ Corp, and Virag Joshi, president and CEO, who has led the company’s expansion efforts.