Devyani International IPO Subscribed 116.71 Times On Day 3
Devyani International Ltd.'s Rs 1,838-crore initial public offering witnessed strong investor interest on the final day of its subscription.
It received 116.7 times more demand than the shares on offer on the last day, becoming the eighth-most subscribed IPO so far this year. The offer was subscribed 2.6 and 6.6 times on the first day and second day, respectively.
The operator of KFC, Pizza Hut and Costa Coffee stores in India was selling shares at Rs 86-90 apiece. The IPO comprised 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 was 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 541.6 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 9.2 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 closed on Aug. 6.
Subscription Details: Day 3
The IPO was subscribed 116.71 times as of 8 p.m. on Aug. 6.
Institutional investors: 95.27 times.
Non-institutional investors: 213.06 times.
Retail investors: 39.51 times.
Employees: 4.70 times.