KFC, Pizza Hut Franchisee Seeks SEBI’s Nod For IPO
An employee places plastic box supports around a freshly cooked pizza as he prepares a takeaway order in the kitchen of a Pizza Hut restaurant. (Photographer: Chris Ratcliffe/Bloomberg)

KFC, Pizza Hut Franchisee Seeks SEBI’s Nod For IPO

The operator of Pizza Hut and KFC in India has sought the market regulator’s approval to go public.

Devyani International Ltd. will offer fresh equity shares worth up to Rs 400 crore and an offer-for-sale of 12.5 crore equity shares by Dunearn Investments (Mauritius) Pte. Ltd.—an arm of private equity firm Temasek and its promoter RJ Corp Ltd.—in its initial public offering, according to a draft red herring prospectus.

The company didn’t disclose the pricing in the offer document filed with the regulator.

Devyani International, which also operates brands such TacoBell and coffee chain Costa Coffee and runs food and beverages outlets like Vaango and Food Street in India, plans to pare debt worth Rs 357.8 crore, while the remaining proceeds from the IPO will be used for general corporate purposes.

As on March 31, 2021, the company operated 264 KFC, 297 Pizza Hut and 44 Costa Coffee stores across India. It has a presence in 26 states and three union territories. Its revenue in FY21 fell 25% over the preceding fiscal at Rs 1,134.84 crore. Its loss narrowed to Rs 63 crore in FY21 from Rs 121.4 crore a year earlier.

Kotak Investment Banking, CLSA India Pvt. Ltd., Edelweiss Financial Services Ltd. and Motilal Oswal Investment Advisors Ltd. are the book-running lead managers of the IPO.

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