KFC, Pizza Hut, & Costa Coffee franchisor, Devyani International Limited to launch its Initial Public Offer on August 4, 2021; sets Price Band at Rs 86-90 per equity share

 KFC, Pizza Hut, & Costa Coffee franchisor, Devyani International Limited to launch its Initial Public Offer on August 4, 2021; sets Price Band at Rs 86-90 per equity share

Price Band of Rs. 86 – Rs. 90 per equity share of face value of Rs. 1 each (“Equity Shares”)

Bid/Offer Opening Date – Wednesday, August 4, 2021 and Bid/Offer Closing Date – Friday, August 6, 2021

Minimum Bid Lot is 165 Equity Shares and in multiples of 165 Equity Shares thereafter

The Floor Price is 86 times the face value of the Equity Share and the Cap Price is 90 times the Face Value of the Equity Share

Risks to Investors: • The three Global Coordinators and Book Running Lead Managers and one Book Running Lead Manager (collectively the "Lead Managers") associated with the Offer have handled 24 public issues in the past three years, out of which 6 issues closed below the issue price on listing date.• The Price/Earnings ratio based on diluted EPS for Fiscal 2021 for the Company is not ascertainable as EPS is negative, as compared to the average industry peer group PE ratio of 179.21.• Weighted Average Return on Net Worth for Fiscals 2021, 2020 and 2019 is (24.26)%.• Average Cost of acquisition of Equity Shares for the Selling Shareholders, namely Dunearn Investments (Mauritius) Pte. Ltd. and RJ Corp Limited is ₹  30.61 per Equity Share and ₹  3.24 per Equity Share, respectively and the Offer Price at the upper end of the Price Band is ₹  90 per Equity Share

Mumbai, July 30, 2021: Devyani International Limited (the “Company”), the largest franchisee of Yum Brands in India, and among the largest operators of chain quick service restaurants (“QSR”) in India (Source: Global Data Report), on a non-exclusive basis, operates Pizza Hut, KFC, and Costa Coffee stores, as well as stores of other brands such as Vaango, Food Street, Masala Twist, Ile Bar, Amreli and Ckrussh Juice Bar, is proposing to open the Bid/Offer Period in relation to its initial public offering of Equity Shares (the “Offer”) on Wednesday, August 4, 2021. The Bid/Offer period will close on Friday, August 6, 2021. The Price Band for the Offer has been fixed at Rs. 86 – Rs. 90 per Equity Share. 

The Company and the Selling Shareholders, may in consultation with the Lead Managers, consider participation by Anchor Investors in accordance with the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, as amended (the “SEBI ICDR Regulations”). The Anchor Investor Bid/Offer Period shall be one Working Day prior to the Bid/Offer Opening Date. 

The IPO comprises a fresh issuance of Equity Shares aggregating to Rs. 4,400 million by the Company (“Fresh Issue”) and an offer for sale of up to 155,333,330 Equity Shares by the selling shareholders, namely, Dunearn Investments (Mauritius) Pte. Ltd. (the “Investor Selling Shareholder”), and the promoter selling shareholder, RJ Corp Limited (the “Promoter Selling Shareholder” and together with the Investor Selling Shareholder, the “Selling Shareholders” and such offering of Equity Shares by the Selling Shareholders, the “Offer for Sale”). The Offer includes a reservation of up to 550,000 Equity Shares for subscription by Eligible Employees of the Company (the “Employee Reservation Portion”). The Offer less the Employee Reservation Portion is referred to as the “Net Offer”. 

The Offer is being made through the Book Building Process, in terms of Rule 19(2)(b) of the Securities Contracts (Regulation) Rules, 1957, as amended (“SCRR”) read with Regulation 31 of the SEBI ICDR Regulations and in compliance with Regulation 6(2) of the SEBI ICDR Regulations, wherein not less than 75 % of the Net Offer shall be allocated on a proportionate basis to Qualified Institutional Buyers (“QIBs”, the “QIB Portion”), provided that our Company and the Selling Shareholders may, in consultation with the Lead Managers, allocate up to 60% of the QIB Portion to Anchor Investors on a discretionary basis in accordance with the SEBI ICDR Regulations (“Anchor Investor Portion”), of which one-third shall be reserved for domestic Mutual Funds, subject to valid Bids being received from domestic Mutual Funds at or above the Anchor Investor Allocation Price. Further, 5% of the QIB Portion (excluding Anchor Investor Portion) (“Net QIB Portion”) shall be available for allocation on a proportionate basis only to Mutual Funds, and the remainder of the Net QIB Portion shall be available for allocation on a proportionate basis to all QIBs, including Mutual Funds, subject to valid Bids being received at or above the Offer Price. However, if the aggregate demand from Mutual Funds is less than 5% of the Net QIB Portion, the balance Equity Shares available for allocation in the Mutual Fund Portion will be added to the remaining Net QIB Portion for proportionate allocation to QIBs. 

Further, not more than 15% of the Net Offer shall be available for allocation on a proportionate basis to Non-Institutional Bidders and not more than 10% of the Net Offer shall be available for allocation to Retail Individual Bidders in accordance with the SEBI ICDR Regulations, subject to valid Bids being received at or above the Offer Price. Further, Equity Shares will be allocated on a proportionate basis to Eligible Employees applying under the Employee Reservation Portion, subject to valid Bids received from them at or above the Offer Price. All potential Bidders (except Anchor Investors) are required to mandatorily utilise the Application Supported by Blocked Amount (“ASBA”) process providing details of their respective ASBA accounts, and UPI ID in case of RIBs using the UPI Mechanism, if applicable, in which the corresponding Bid Amounts will be blocked by the SCSBs or by the Sponsor Bank under the UPI Mechanism, as the case may be, to the extent of respective Bid Amounts. Anchor Investors are not permitted to participate in the Offer through the ASBA process. 

The Company proposes to utilise the Net Proceeds towards (i) repayment/prepayment of all or certain of the Company’s borrowings; and (ii) general corporate purposes.

The Equity Shares offered in this Offer are proposed to be listed at both BSE Limited (“BSE”) and the National Stock Exchange of India Limited (“NSE”, together with BSE, the “Stock Exchanges”) post the listing. For the purpose of the Offer, NSE is the Designated Stock Exchange. 

Kotak Mahindra Capital Company Limited, CLSA India Private Limited, and Edelweiss Financial Services Limited are the Global Coordinators and Book Running Lead Managers to the Offer and Motilal Oswal Investment Advisors Limited is the Book Running Lead Manager to the Offer.

All capitalized terms used herein and not specifically defined shall have the same meaning as ascribed to them in the Red Herring Prospectus dated July 26, 2021 (“RHP”) filed with the Registrar of Companies, National Capital Territory of Delhi and Haryana at New Delhi (“RoC”).