Devyani International IPO Subscribed 6.61 Times On Day 2
Devyani International Ltd.'s Rs 1,838-crore initial public offering continued to see strong retail investor interest even on second day of its subscription.
The offer was subscribed 2.69 times on the first day, with the portion reserved for retail investors receiving 11.37 times more demand than the shares on offer.
The operator of KFC, Pizza Hut and Costa Coffee stores in India will sell shares at Rs 86-90 apiece. The IPO comprises a fresh issue of Rs 440 crore and an offer-for-sale worth Rs 1,398 crore by selling shareholders—Dunearn and RJ Corp. The company is seeking a market valuation of Rs 10,823 crore at the upper end of its price band.
Devyani International plans to use the proceeds to repay or make advance payments for long-term borrowings to the extent of Rs 324 crore. Outstanding borrowings as on June 30 stood at Rs 541.58 crore. The company has recorded an operating profit in each of the last three years, although it incurred a net loss during this period.
The company has raised Rs 824.8 crore by allotting 9.16 crore shares to 63 anchor investors before its IPO.
Besides Devyani International, Windlas Biotech Ltd., Exxaro Tiles Ltd. and Krsnaa Diagnostics Ltd. launched their maiden offers on Aug. 4. The IPOs will close on Aug. 6.
Subscription Details: Day 2
The IPO was subscribed 6.61 times as of 5 p.m. on Aug. 5.
Institutional investors: 1.32 times
Non-institutional investors: 6.37 times
Retail investors: 22.94 times
Employees: 3.10 times