Devyani International makes strong market debut, shares zoom nearly 57%
Shares of Devyani International Ltd, the largest franchisee of Pizza Hut, KFC and Costa Coffee in India, on Monday debuted with a huge premium of nearly 57 per cent against its issue price of ₹90. On BSE, Devyani International's stock listed at ₹141, a jump of 56.66 per cent from the issue price. It made its debut at ₹140.90, a gain of 56.55 per cent, on NSE.
The company's market valuation was at ₹15,482.49 crore on BSE. The initial public offer of Devyani International was subscribed 116.71 times earlier in August. Devyani International initial public offer or IPO had a fresh issue of up to ₹440 crore and an offer for sale of up to 15,53,33,330 equity shares. The ₹1,838-crore IPO was in a price range of ₹86-90 per share.
Devyani International has said it will use the proceeds from the fresh issue retire debt and for general corporate purposes.
Devyani International on Sunday announced the extension of its partnership with Costa Coffee. "DIL has entered into a revised development agreement for its existing Costa business on August 14, 2021, pursuant to which DIL has been granted development rights for PAN India in a phased manner," it said in a statement. "This agreement has initially granted development rights for a period of 5 years and extendable from time to time subject to meeting of development and contractual obligations."
Devyani International is an associate company of RJ Corp, the largest bottling partner of food and beverages (F&B) major PepsiCo. The company is the largest franchisee of Yum Brands, operating core brands such as Pizza Hut, KFC, Costa Coffee. It also has its own brands such as Vaango, Food Street, Masala Twist, Ile Bar, Amreli, and Ckrussh Juice Bar.
(With agency inputs)