Devyani International has fixed the price band for the IPO at Rs 86-90 per share. The lot size in the IPO is 165 shares. Devyani International IPO Open: The IPO of Devyani International, the largest operator of quick service restaurant chains, has opened today i.e. on August 4. Money can be invested in this till 6 August. Devyani International is the largest franchise company of KFC, Pizza Hut and Costa coffee in India.
The price band of the issue has been fixed at Rs 86-90. In terms of upper price band, the company plans to raise Rs 1838 crore through IPO. Anil Singhvi, Managing Editor, Zee Business, recommends investing in the IPO for both listing gains and long-term investments.
Devyani International IPO Details: Investor’s Power to double Money
Anil Singhvi says that Devyani International is a must apply IPO. In this, investors can invest for listing gains and for a longer period. He says that the company’s brand is strong and people of all age groups are going to like it. The company operates Pizza Hut, KFC, Costa Coffee in India. That is, the promoters have experience in managing multiple brands and the business is fully diversified.
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The growth potential is great due to the distinct business model. The anchor book is strong and has good investors. It has the power to double investors’ money only on IPO listing. At the same time, it will give strong returns in the long term as well. There is only one concern here that the company is not making profits so far. But this concern is also expected to go away in the future.
Devyani International IPO Price Band and Lot Size
Devyani International has fixed the price band for the IPO at Rs 86-90 per share. The lot size in the IPO is 165 shares. That is, at least Rs 14,850 will have to be invested in it. You can bid for a maximum of 13 lots. That is, a maximum of Rs 1,93,050 can be invested in this.
Fresh equity shares worth Rs 440 crore will be issued under the IPO. While 155,333,330 equity shares will be sold by the promoter and existing shareholders through Offer for Sale (OFS).
How much share is reserved for whom?
75% of the IPO is reserved for qualified institution buyers. 10 per cent is reserved for retail investors, while 15 per cent is reserved for non-institutional investors. The company has reserved 5.50 lakh shares for its employees.
Kotak Mahindra Capital Company Limited, CLSA India Pvt Ltd, Edelweiss Financial Services Ltd and Motilal Oswal Investment Advisors Ltd are the investment bankers for this IPO.
Where will the funds be used ?
Devyani International will use the funds raised through this IPO to reduce debt. The largest share of Devyani International’s revenue comes from KFC and Pizza Hut stores. In 2019, their share in its revenue was 76.08 percent. This share increased to 77.49 percent in 2020 and 92.28 percent in 2021. The company has 655 stores in 155 cities. In the last six months, the company has opened 109 stores across the country. The company will further expand itself.