After the success of Burger King IPO, were you waiting for KFC IPO, Pizza Hut IPO, and Costa Coffee IPO? Then the wait is over as Devyani International IPO is coming soon in 2021.
Devyani International is the backbone of all the large franchises like KFC, Pizza Hut, and Costa Coffee in India. They have filed DRHP (Draft Red Herring Prospectus) to raise Rs. 1,400 Crores through an IPO. Now SEBI has got a lot of work for reviewing DRHP as many companies are trying to get listed this 2021.
Business of Devyani International (KFC, Pizza Hut, and Costa Coffee)
Devyani International is an associate company of RJ Corp which is famous as the largest bottler for the Pepsico brand in India. Varun Beverages the listed company is part of RJ Group.
After Burger King and Barbeque nation, this is the third QSR (quick-service restaurant) company from Gurugram to get listed in few weeks. Australian origin, KFC is the most loved QSR when it comes to non-veg. Due to the covid pandemic, they have been struggling to clock their required revenue but the brand has the potential to make a comeback as soon as pandemic restrictions are removed.
After Domino’s, Pizza Hut is the only pizza QSR that serves pizza on the large scale. Costa Coffee is quite famous in tier 1 cities yet they are not very established in tier 2 or tier 3 cities. The company operates 297 outlets of Pizza Hut, 264 outlets of KFC, and 44 stores of Costa Coffee in India.
Apart from big core brands, Devyani has their own brands called Ile Bar, Masala Twist, Street Food, Chkrussh Juice, and Vango. The presence of these brands is in 155 cities of India with 692 total outlets.
The objective of Devyani International IPO (KFC IPO, Pizza Hut IPO, and Costa Coffee)
The total issue is Rs. 1,400 Crores which comprises of fresh issue of Rs. 400 Crores and OFS (offer for sale) of 125,333,330 equity shares. Temasek and RJ corp (investor in Devyani International ) are going to take a partial exit. The fresh issue will be used for general corporate purposes and repay the debt company has.
The revenue increased by 51.5% in FY21 as compared to FY20. The company is expecting to grow the future of the QSR (quick-service restaurant) industry by 12.4% CAGR in the next 5 years.