KFC, Pizza Hut and Costa Devyani International Coffee Operator will open the initial public offering to subscribe in the coming week.
This will be one of the four IPOs launched next week. Krsnaa diagnostics, Windlas Biotech, and Exxaro tiles are other IPOs.
Here are 10 main things that need to be known before subscribing to public problems:
1) IPO date
This offer will open to subscribe on August 4 and will be closed on August 6, anchor book, if any, will be open to offers for a day on August 3, the day before opening.
2) public problems
The initial public offering consists of a new edition of Rs 440 Crore, and offers for sale 15.53.33.330 equity shares by investors and promoters.
Investors Dunearn Investments will sell 6.53.33 330 Equity shares, and promoters RJ Corp will collect 9 crore equity shares through offers for sale. This offer includes 5.5 lakh equity stocks for company employees.
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3) ribbon prices and fundraising
Devyani International, in consultation with merchant bankers, has repaired the price band at Rs 86-90 per equity stock for its public offerings.
Total fundraising reaches 1,838 crore rs at the end of a higher price ribbon.
4) Lot size and shares ordered for investors
Investors can bid at least 165 equity shares and in multiples of 165 equity shares afterwards. Retail investors can invest at least RS 14,850 per lot and maximum investment is Rs 1,93,050 for 13 lots because they are allowed to invest up to RS 2 lakh in IPO.
The company has ordered up to 75 percent of total bidding for investment by qualified institutional buyers, 10 percent by retail investors and 15 percent by non-institutional investors.
5) The purpose of this problem
The company will utilize net results from fresh problems towards loan payments (Hospital 324 Crore), and company general needs.
Offers for sales money will go to sell shareholders.
6) Company Profile
Devyani International is the biggest franchisee of the YUM brand in India and is one of the largest operators of the restaurant fast chain service (QSR) in India, non-exclusively, and operates 696 stores in 166 cities in India, on the 2021.
Of course! Brands Inc. operate brands such as KFC (global chicken restaurant brand), Pizza Hut (the world’s largest chain in the world specializing in the sale of ready-to-eating pizza products) and Taco Bell brands and have global presence with more than 50,000 restaurants in more than 150 countries , on December 31, 2020.
The company began relations with Yum in 1997, with the start of the operation of the first store pizza hut in Jaipur. It operates 284 KFC stores and 317 Pizza Hut stores, has a wide presence in 26 states and three Union regions in India in June 2021.
In addition, this is a franchise of the Costa coffee brand (Global Coffee Shop chain with more than 3,400 coffee shops in 31 countries) in India, which is owned by Costa, and operates 44 Costa coffee stores on the 2021. Even though the Covid-19 pandemic is ongoing , has continued to expand the store network and in the six months ending March 2021, 109 stores in the core brands business.
The business is widely classified into three verticals that include KFC stores, Pizza Hut and Costa Coffee (Core Brands) operated in India. Shops that are operated outside India mainly consist of KFC shops and pizza in Nepal and Nigeria are under its international business, and other operations in the food & beverage industry, including own brand shops such as Vaango and Food Street come under vertical business ,
It has a strong presence in the main Metro area of Delhi NCR (consisting of Faridabad, Ghaziabad, Gurgaon, Delhi and Noida), Bengaluru, Kolkata, Mumbai and Hyderabad.
Core Brands business, along with international business contributed 94.19 percent to revenue from operations at FY21.
7) Strength and Strategy
A) The company has a very known global brand portfolio that serves various customer preferences.
b) This is a comprehensive multi-dimensional QSR player.
c) have the presence in the main consumption market with a cluster-based approach.
d) This has been able to utilize the synergy of substantial operations throughout the brand that operates.
e) This has a disciplined financial approach with a focus on cash flow and return.
f) It has a famous board and an experienced senior management team that has significant experience in all aspects of the company’s business.
Strategy
a) This intends to expand the core store network strategically.
b) aims to continue to improve unit level performance.
c) intends to focus on shipping channels for core brands.
d) This will continue to invest in technology to maintain its competitive advantage, and focus on increasing overall technology infrastructure including digital capabilities and shipping.
8) Financials.
Devyani International reduced its losses in FY21 to Rs 62.98 Crore from Rs 121.42 Crore at FY20. Revenues in the same period decreased to Rs 1,134.84 Crore from Rs 1,516.4 Crore.
Image23172021.
Revenue from the KFC brand increased to RS 644.26 Crore at FY21 from Rs 609.13 Crore in FY20, but the Pizza Hut business fell to RS 287.9 Crore from RS 417.4 Crore and Costa Coffee Revenues declined to RS 21.4 Crore from RS 81, 96 Crore in the same period.
The total gross margin of the Core Brands business increased to 69.87 percent at FY21 from 69.55 percent at FY20.
Image33172021.
9) Promoters and management
Ravi Kant Jaipuria, Varun Jaipuria, and RJ Corp. is a company promoter, has 75.79 percent of share ownership as it is now.
Among public shareholders, Dunearn held 14.07 percent of the shares in the company, Yum India 4.57 percent, Khandwala Finstock 1.89 percent, and Saber Investment Consultants LLP 1.52 percent.
Ravi Kant Jaipuria is a non-executive director and chairman of the company’s board. He has more than three decades of experience in conceptualizing, implementing, developing and expanding food, beverages and milk in South Asia and Africa.
Varun Jaipuria is a non-executive director of the company. He has 12 years of experience in the soft drink industry and has also completed a program for leadership development at Harvard Business School.
Raj Pal Gandhi is a non-executive director of the company. He has more than 28 years of experience with one of the group companies (Varun drinks) and has played a role in developing our diversified strategies, expansion, mergers, and acquisitions, Capex funding and institutional relations. He also has experience in finance and accounts. Before this, he has worked with electronic and technology trading development companies, and powertronics uptron.
Virag Joshi is the director all the time (president & CEO) company. He has been a major strategist in expansion of coffee outlet Pizza Hut, KFC, Costa from a small base of five restaurants in 2002 to 600 plus outlets in the last 19 years. He has been associated with an Indian hotel company, Domino’s Pizza India, Milkfood, and Priya Village Roadshow.
Manish Dawar is the director all the time and the Head of the Company’s Financial Officer. He is a rental accountant and member of the Indian Institute of Company Secretary. He has worked in various company settings including Reebok India, Reckitt Benckiser, Vedanta, Den Networks and Vodafone India.
Ravi Gupta, Rashmi Dhariwal, Naresh Trihan, Girish Kumar Ahuja, and Pradeep Khushalchand Sardana is an independent director on the board.
Image43172021.
Rajat Luthra is the chief executive of the KFC business company. Previously, he was associated with the Hindustan Lever, Barista coffee company, Celio Future Fashion. Domino’s Pizza India, Essar Telecom Retail, Quality Inns India, Sterling Catering Services, and Mobilestore Limited.
Amitabh Negi is Chief Executive Officer
