Devyani International, the single largest operator of marquee quick-service restaurants (QSR) such as KFC, Costa Coffee, and Pizza Hut has set the price band for its upcoming IPO at Rs 86-90 per share. At the upper end of the price band, the company will look to raise Rs 1,838 crore from the primary market. Devyani International’s IPO opens next week on August 4 and will remain open for subscription till August 6. This will make it the third restaurant chain to raise funds through an IPO in recent time, after the successful listing of Burger King India and Barbeque Nation Hospitality.
Devyani Internationa’s IPO consists of a fresh issue of equity shares and an offer for sale. The company will raise Rs 440 crore through a fresh issue of equity shares while existing shareholders will sell 15.53 crore equity shares, which translates to Rs 1,398 crore at the upper end of the price band. Investors can bid for the issue in a bid lot of 165 equity shares and in multiples thereafter. At the higher end of the price band, the minimum investment for the IPO would be Rs 14,850 per investor.
75% of the entire issue will be reserved for Qualified Institutional Buyers (QIB), while 15% will be kept for Non-Institutional Investors (NII) and 10% for retail investors. Devyani International has also kept 5.50 lakh shares reserved for its employees. Upon successful completion of its IPO, Devyani International will join the likes of Jubilant FoodWorks Ltd, Westlife Development Ltd and Burger King India.