Devyani International IPO

Devyani International Limited is the biggest Yum Brands franchisee in India and one of the country’s biggest operators of network quick service outlets, with 655 locations in 155 regions as of March 31, 2021. Devyani International IPO will hit the market on 04 August 2021.

About

Their business is categorized into three domains:

Retail stores based in India (KFC, Pizza Hut, and Costa Coffee are termed  as “Core Brands,” and the business in India is termed as the Core Brands Business.

Retail outlets operated Overseas which excluding India, mainly KFC and Pizza Hut retail outlets in Nepal and Nigeria named as International Business.

While some additional F&B activities or F&B Operations, namely Vaango and Food Street outlets termed as Other Business.

Journey

They started their partnership with Yum in 1997, when they opened their first Pizza Hut located in Delhi. They’ve since expanded their operations with KFC and Pizza Hut outlets. As of March 31, 2021, they had 264 KFC outlets and 297 Pizza Hut outlets throughout India.

In parallel, as of March 31, 2021, they were the franchisee of the Costa Coffee group in India, which is owned by Costa International and run 44 Costa Coffee outlets.

Their specified store growth and development strategy focuses on high-potential sites throughout towns and cities, including airports, high-traffic regions, malls, food courts, hospitals, business centres, and transportation zones.

They make sure that the appearance and feel of their new locations are similar across all formats, including dine-in, takeout, and delivery.

Partnership

For the franchisor’s trademark protection and management, they cooperate with Yum across numerous elements of the operations for KFC and Pizza Hut, such as product innovation and development, marketing plan, and technological projects.

Yum also collaborates with them on advertising, promotion, and marketing efforts. In terms of similar characteristics, Costa Coffee allows them to maintain flexibility in their operations, and they are assisted by Costa in choosing their menu, products, suppliers, and distributors.

Vision

They want to be the most popular restaurant business for People and clients respectively.

Mission

To be a people-centered, customer-focused, and process-driven organization that strives for quality every day, with a beat-year-ago mindset and a transformation sentiment.

Devyani International IPO

Devyani International, headquartered in Gurugram has submitted Draft Red Herring Prospectus(DRHP) to Securities and Exchange Board of India(SEBI) for initial public offering (IPO) of INR 1,838 Crore on 15 May 2021.

The Offer includes a fresh equity of Rs. 440 crore and an offer for sell(OFS) up to Rs. 1398 crore by the promoters.

They got approval from Securities and Exchange Board of India(SEBI) on 19 July, 2021 to float the initial public offering (IPO) in the market.

Financials Trends

Basic and Diluted Earnings Per Share (EPS)

Objects of the Issue

• Prepayment / repayment of all or a portion of the outstanding borrowings of the company to be availed on consolidated basis.
• To meet common corporate objectives.

Basis of The offer

• They have a collection of well-known international brands.
• They are a multi-dimensional QSR operator
• With a cluster-based approach, with a presence throughout core consumption segment.
• Functioning efficiency and cross-brand integrations
• Their financials are well-organized, with a priority on cash flows and returns.
• A professional board of directors and an executive management team with significant expertise.

Devyani International IPO Peer Comparison

Devyani International IPO Details

Devyani International IPO Tentative Date

The Devyani International IPO opening date is o4 August 2021, and the closing date is 06 August 2021. The issue may list on 17 August 2021.

Basis of Allotment

Devyani International IPO Allotment Status

Allotment of equity stocks subject to the Fresh Issue and transfer of the Promoter Selling Shareholders’ OFS Stocks to the winning Bidders subject to the Offer for Sale. Nevertheless, the status of the allotment has yet to be revealed.

Here, you can find the Allotment Status of Devyani International IPO.

Devyani International IPO GMP

Devyani International IPO Grey Market Premium is as follows and you can check GMP of other IPOs as well from links given below:

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Devyani International IPO Review

This IPO is for everyone whether you are looking for listing gain or long term view. Apply for listing gain and you can also hold them for a long term as the company is good. Management is also trustworthy & they have a clear vision for growth.

Devyani International IPO Risk

• The effect of the ongoing COVID-19 epidemic on their business, both now and in the future.
• They rely on Yum for their KFC and Pizza Hut outlets, and the termination of these agreements would have a substantial negative impact on their operations.
• They are subject to all of the risks that come with leasing real estate, and any negative developments might have a significant impact on their operations.
• In Their Audited Consolidated Financial Statements, their Statutory Auditors have added some unfavourable observations, qualifiers, and items of emphasis.
• This Draft Red Herring Prospectus’ Pro-forma Financial Details is not indicative of their future financial situation.

Other Threats

• Any negative developments in their connection with third-party food delivery aggregators might have a negative impact on their business.
• Food-borne diseases and other unfavourable food-related occurrences might have a significant negative impact on their business, both real and perceived.
• The QSR sector in India is competitive, and their business might be impacted by their competitors’ activities.
• The Company, its subsidiaries, directors, and promoters are all involved in ongoing legal procedures. Any negative decision in such procedures might have a negative impact on Their company.
• They could make strategic deals or investments that don’t work out.

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Devyani International IPO Subscription Status

Promoters

• RJ Group
• Ravi Jaipuria
• Varun Jaipuria

Promoter Holding

• Devyani International DRHP

Contact Details

Devyani International Limited

F-2/7 Okhla Industrial Area Phase-i
New Delhi, Delhi, India – 110020
Tel: +91-11 4170 6720
E-mail: [email protected]
Website: www.dil-rjcorp.com/

Registrar

Link Intime India Private Limited
C-101, 1st Floor, 247 Park, Lal Bahadur Shastri Marg,
Vikhroli (West) Mumbai 400 083 Maharashtra
Tel: (+91 22) 4918 6200
E-mail: [email protected]
Website: www.linkintime.co.in

Lead Manager(s)

1. Kotak Mahindra Capital Company Ltd
2. CLSA India Pvt Ltd
3. Edelweiss Financial Services Ltd
4. Motilal Oswal Investment Advisors Ltd

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Disclaimer

The reference of IPO Grey Market Premium (IPO GMP) is only valid for the date specified in the header.
On the IPO Grey Market, we do not purchase or sell IPO forms.

The Kostak Rate is the profit earned by selling an IPO application (in an off-market transaction) to somebody else before the issue is allotted or listed.

Do not subscribe to an IPO based solely on the premium price, as it may alter at any time before to the listing. Only consider the fundamentals of the companies when subscribing.

The GMP rates for IPOs are based on market intelligence. Please keep in mind that these IPO GMP rates may vary by geography and market.

Note:

We do not engage in grey market trading or facilitate the purchase or sale of IPO forms.

What is grey Market?

The phrase “grey market” refers to an unofficial over-the-counter market where IPO applications and IPO stock are traded before the entity is listed on a stock exchange. This is a technique for dealers to help consumers who wish to sell their home before it goes on the market.

This is also a way to increase the listing fee and provide help for the issue prior to the listing. In the IPO grey market, there are two types of transactions that take place:

• IPO stocks are traded at a premium in the grey market.
• At a kostak, an IPO application is traded.

What is grey Market Premium?

The Grey Market Premium, or GMP, is the price at which IPO stock shares are exchanged in the grey market.

This could be correct or incorrect, implying that the grey market trading price is greater or cheaper than the issue price, depending on demand and supply for the stocks.

Typically, individuals who do not want to incur the risk of their shares not being allocated through an IPO can purchase shares on the grey market in the hopes of flipping them on the IPO for a profit.

What is Kostak?

The additional amount in rupees at which IPO applications are sold in the IPO Grey Market is known as kostak (or price of application). The bonus of a maximum lot retail application in an IPO is generally described as the ‘Kostak’ value.

The Kostak price is significant primarily before the offer is closed for subscription and the ultimate bidding status is made accessible to IPO participants. After the final auction status is known to investors, only a small percentage of IPO applications are exchanged.

‘Kostak’ is made for those who do not want to incur a risk on an IPO or gain from a listing.

Example:

Devyani International IPO
Issue Price: Rs 306 Per Equity Share (Maximum Bid price)
Lot Size: 45
Grey Market Premium: Rs 220 to Rs 230
Kostak (Rs 13770): Rs 680 to Rs 720

This means Devyani International IPO applications of Rs 13770 are being traded in IPO Grey Market at Rs 680 to Rs 720.

Despite the fact that this IPO’s Grey Market Premium is roughly 75% of the issue price, the ‘Kostak’ is just 5% of the application value.

Kostak rate

The Kostak rate is the fee received by an investor who sells his or her IPO application on the grey market. Regardless of allotment status, this is the money an individual stands to gain.

Subject to Sauda

The money that an investor stands to gain by selling his or her application for firm allotment is referred to as the subject to Sauda. Firm allocation is the important operative phrase here. The sauda will be cancelled if the applicant is not allotted.

When selling an IPO application in the grey market, the client and seller agree that the sale will only be legal if the seller receives the allocation. The deal is avoided if the seller does not get any stocks throughout the IPO procedure.

FAQ

Devyani International IPO Opening Date?

Devyani International IPO will open is 04 August 2021.

Devyani International IPO Allotment Date?

Devyani International IPO Allotment Date is 11 August 2021 2021.

Devyani International IPO Listing Date?

Devyani International IPO Listing date is 17 August 2021

Devyani International IPO GMP Today?

Devyani International IPO Grey Market Premium is INR 54.

Devyani International IPO Price Band?

Devyani International IPO price Band is 86 to 90.