Devyani International gets SEBI nod for IPO, to raise Rs 1400 crore

Costa Coffee operator in India Devyani International which is also the largest franchisee of Pizza Hut, KFC in India, has received SEBI’s approval to raise Rs 1,400 crore through IPO.

The initial public offering (IPO) consists of 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, according to draft red herring prospectus.

Under the offer for sale, Dunearn Investments (Mauritius) Pte Ltd, a wholly-owned subsidiary of Temasek Holdings, will sell 65,333,330 shares and promoter RJ Corp will offer six crore shares, it added.

Devyani International filed for its IPO papers with the regulatory body earlier this May.

Also Read: Pizza Hut, KFC franchisee Devyani International files for Rs1,400 crore IPO

According to merchant banking sources, the IPO is expected to fetch Rs 1,400 crore.

The proceeds from the fresh issue will be used to retire debt and general corporate purposes.

Devyani International is part of the largest bottling partner of PepsiCo in India, RJ Corp with interests and investments in the Indian retail food and beverages (F&B) sector.

Being the largest franchisee of KFC and Pizza Hut in India, it also operate company owned brands like Vaango, Food Street, Masala Twist, Ile Bar, Amreli and Ckrussh Juice Bar.

At present, Devyani runs 297 Pizza Hut stores, 264 KFC stores and 44 Costa Coffee in India.

Led by Ravi Kant Jaipuria, promoter of RJ Corp, and Virag Joshi, president and CEO, who been a key strategist to the expansion efforts by the company.

May Interest: Temasek to invest Rs 400cr in Devyani International

Kotak Mahindra Capital Company, CLSA India, Edelweiss Financial Services and Motilal Oswal Investment Advisors are the book running lead managers to the issue.