Devyani International Shares End 36% Higher On Market Debut
Devyani International Ltd. listed at a premium on market debut after investors piled into the initial public offering of the operator of KFC, Pizza Hut and Costa Coffee stores in India.
The stock listed at Rs 141 apiece on the National Stock Exchange, a premium of 56.7% to its IPO price of Rs 90. It saw an intraday low of Rs 120.80. The stock ended its first day at Rs 122.6, 36.2% higher than its upper price band of Rs 90.
The IPO received 116.7 times more demand than the shares on offer, becoming the eighth-most subscribed issue so far this year.
It 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 said it would use 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 competes with listed peers like Jubilant Foodworks Ltd., which operates Dominos Pizza stores in India; Westlife Development Ltd., that operates McDonald's outlets; and Burger King India Ltd.