Devyani International
Mainboard₹1,838 Cr issue
+56.67%
Listing gain over issue price
Issue size
₹1,838 Cr
1 lot at cut-off
₹14,850
Lot size
165shares
Open
04 Aug 2021
Close
06 Aug 2021
Allotment
11 Aug 2021
Listing
16 Aug 2021
Listing performance
Issue price
₹90
Listed at
₹141
Listing-day close
₹123.50
Latest price
₹117.38
Close on 23 Oct 2026
Listing gain
+56.67%
Return since issue
+30.42%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 04 Aug 2021 – 06 Aug 2021
- Listing date
- 16 Aug 2021
- Face value
- ₹1 per share
- Issue price
- ₹90 per share
- Lot size
- 165 shares
- Total issue size
- ₹1,838 Cr
- Market cap at offer price
- ₹10,823 Cr
- Promoter holding
- 73.38% → 62.91% pre-issue → post-issue
- ISIN
- INE872J01023
- Registrar
- MUFG Intime India Pvt.Ltd.
- Lead managers
- CLSA India Pvt.Ltd.
- Registered office
- F-2/7, Okhla Industrial Area, Phase-I, New Delhi
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 9,16,52,499 | — | — |
| Market maker | 0 | — | — |
Application size
Minimum 165 shares per lot, in multiples, at ₹90
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 165 | ₹14,850 |
| Retail (max) | 13 | 2,145 | ₹1,93,050 |
| S-HNI (min) | 14 | 2,310 | ₹2,07,900 |
| S-HNI (max) | 67 | 11,055 | ₹9,94,950 |
| B-HNI (min) | 68 | 11,220 | ₹10,09,800 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Shares allocated
9,16,52,499
Anchor portion
₹825 Cr
at ₹90 per share
Valuation and performance
Valuation at offer price
₹90 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| Market cap | — | ₹10,823 Cr |
About Devyani International
Devyani International Limited is a QSR chain operator in India incorporated in 1991 originally as 'Universal Ice Creams Private Limited' and converted to public limited company in 2005. The company operates stores under three Core Brands: KFC, Pizza Hut, and Costa Coffee in India, as well as International Business comprising KFC and Pizza Hut stores in Nepal and Nigeria, and Other Business including brands such as Vaango and Food Street. The company makes money through revenue generated from in-store dining and food delivery sales from these outlets.
Company Analysis
from RHPDevyani International Limited operates quick-service restaurants (QSRs) under KFC, Pizza Hut, and Costa Coffee brands in India, and KFC and Pizza Hut stores internationally in Nepal and Nigeria.
Devyani International Limited is a QSR chain operator in India incorporated in 1991 originally as 'Universal Ice Creams Private Limited' and converted to public limited company in 2005. The company operates stores under three Core Brands: KFC, Pizza Hut, and Costa Coffee in India, as well as International Business comprising KFC and Pizza Hut stores in Nepal and Nigeria, and Other Business including brands such as Vaango and Food Street. The company makes money through revenue generated from in-store dining and food delivery sales from these outlets.
Quick-service restaurants (QSR)Food and beverage (F&B)International quick-service restaurantsFood delivery and retail
Objects of the Issue
- Repayment/prepayment of all or certain of our borrowings ₹3,240.00 million p.22
- General corporate purposes ₹1,008.19 million p.22
- Capital expenditure for expansion of restaurant network and establishment of new stores As part of the Fresh Issue proceeds p.64
- Working capital requirements As part of the Fresh Issue proceeds p.64
- Repayment of certain borrowings As detailed in borrowings table p.52
- Repayment/prepayment of all or certain of our borrowings ₹3,240.00 million p.99
- General corporate purposes ₹1,008.19 million p.100
Issue Structure
- Total Issue
- ₹18,380 million (204,222,218* Equity Shares)
- Fresh Issue
- ₹4,400 million (48,888,888* Equity Shares)
- Offer for Sale
- ₹13,980 million (155,333,330* Equity Shares comprising 65,333,330* Equity Shares by Dunearn aggregating ₹5,880 million and 90,000,000* Equity Shares by RJ Corp aggregating ₹8,100 million)
- Price Band
- ₹86 per Equity Share (Floor Price) to ₹90 per Equity Share (Cap Price)
- Lot Size
- 165 Equity Shares and in multiples of 165 Equity Shares thereafter
- Face Value
- ₹1 per Equity Share
Business Model
The company operates QSR stores primarily under franchise arrangements with Yum Restaurants (India) Private Limited for KFC and Pizza Hut brands, and Costa International Limited for Costa Coffee. Revenue is generated from: (1) in-store dining sales; (2) food delivery sales through its own channels and third-party aggregators (Swiggy, Zomato); (3) international operations in Nepal and Nigeria. The company pays continuing fees of 6.3% of store revenues to Yum, 6% of gross revenues for marketing/advertising to Yum, and other royalty fees to brand owners. The company had 692 stores as of March 31, 2021 and 735 stores as of June 30, 2021.
Business Segments
Operates stores of KFC, Pizza Hut and Costa Coffee in India
Operates KFC and Pizza Hut stores primarily in Nepal and Nigeria
Certain other operations in the F&B industry, including stores of own brands such as Vaango and Food Street
Operates KFC, Pizza Hut and Costa Coffee franchise stores across India and select international locations
Operates proprietary brands including Vaango and Food Street restaurants
Operates KFC, Pizza Hut and other brand stores in Nepal and Nigeria
Operates KFC, Pizza Hut, and Costa Coffee stores in India. KFC offers fried chicken, burgers, and beverages; Pizza Hut offers pizzas, pasta, and desserts; Costa Coffee offers coffee and baked goods.
Operates KFC and Pizza Hut stores in Nepal and Nigeria on a non-exclusive sole franchisee basis.
Operates proprietary brands including Vaango (South Indian QSR), Food Street, Ile Bar, AMRELI, Ckrussh Juice Bar, Masala Twist, and other outlets in food courts, malls, airports, and highways.
Operating KFC quick-service restaurants under a franchise model with Yum India, featuring fried chicken and pizza-based products with innovation including items like Chizza (fried chicken fillet as pizza base) and value-priced offerings like value-burgers starting at ₹69.
Operating Pizza Hut quick-service restaurants and delivery services under a franchise model with Yum India, offering pizzas and related products with innovative offerings such as 'Funtastic 4 Pizza' sets.
Operating Costa Coffee stores in India under an international development agreement with Costa, featuring coffee products and food items with a dedicated innovation team for new recipes and product development.
Operating proprietary QSR brands including Vaango (South Indian QSR brand launched in 2011) and Food Street (food court operations at airports including Hyderabad Airport and Indira Gandhi International Airport).
Operating Pizza Hut quick service restaurants
Operating KFC quick service restaurants
The Group operates quick-service restaurants and food courts primarily under the KFC brand in India and internationally. Within India operations generated INR 10,194.80 million for the year ended 31 March 2021, and outside India operations generated INR 1,153.58 million.
Operates KFC, Pizza Hut, and Costa Coffee stores in India
Operates KFC and Pizza Hut stores primarily in Nepal and Nigeria
Operates own brand stores including Vaango and Food Street, airport food courts and other F&B operations
Quick-service restaurant operations under franchise agreements with international brands
Operation of Kentucky Fried Chicken franchised outlets serving fried chicken and related products
Operation of Pizza Hut franchised outlets serving pizza, pasta, and related products
Operation of Costa Coffee branded outlets serving coffee and beverages
SWOT Analysis
Strengths
- • Established multi-brand presence with strong franchised QSR operations(p.50)
- • Significant international revenue contribution despite domestic focus(p.50)
- • Substantial tangible asset base supporting operations(p.53)
- • Large established employee workforce providing operational capacity(p.44)
- • Portfolio of highly recognized global brands with extensive global reach and presence(p.127)
- • Largest franchisee of Yum Brands in India with 25-year relationship and strategic equity stake(p.127)
- • Multi-dimensional comprehensive QSR player with expertise across all operational areas(p.130)
- • Strong geographic presence with cluster-based approach across key consumption markets(p.131)
- • Disciplined financial approach with positive operating cash flows(p.133)
- • Experienced leadership team with deep industry expertise(p.133)
- • Strong brand contribution margins across Core Brands Business(p.132)
- • Award-winning workplace culture and diversity initiatives(p.131)
- • Largest Yum franchisee in India with portfolio of established brands(p.147)
- • Diversified brand portfolio across multiple QSR segments(p.125)
- • Ownership of multiple subsidiaries and established operational infrastructure(p.174)
- • Strong delivery business growth post-COVID(p.147)
- • Integrated supply chain management with dedicated food safety personnel(p.147)
- • Experienced management team with deep franchise expertise(p.192)
- • Founder-led with substantial founder commitment(p.192)
- • Strong promoter ownership providing stability(p.194)
- • Established presence across multiple food brands and geographies(p.308)
- • Operational integration of acquired KFC franchise stores expanding market presence(p.308)
- • Diversified revenue streams from food & beverage operations across geographies(p.307)
Weaknesses
- • Dependence on Yum for KFC and Pizza Hut stores, which comprise 92.28% of FY2021 revenue(p.29)
- • Sustained losses and erosion of net worth over three years(p.33)
- • Material uncertainty regarding going concern (FY2019)(p.34)
- • High leverage and finance costs (13.46% of FY2021 revenue)(p.33)
- • Inability to meet development commitments with Yum; prior extensions granted(p.31)
- • Loss of exclusive development rights for Costa Coffee(p.32)
- • Permanent store closures: 61 stores closed in FY2021 due to COVID-19(p.29)
- • High operating expenses that do not correlate to revenue declines(p.30)
- • Significant ongoing losses across multiple years affecting financial stability(p.68)
- • Multiple loss-making subsidiaries and group companies draining resources(p.43)
- • High employee attrition eroding operational stability(p.45)
- • Significant debt burden with covenant compliance risks(p.46)
- • History of delays and defaults in statutory payment obligations(p.50)
- • Promoter concentration creating governance and conflict risks(p.47)
- • Share transfer registry issues with untraceable corporate records(p.51)
- • Heavy reliance on Yum Brands franchises for majority of revenue and operations(p.127)
- • Significant decline in Same Store Sales Growth during COVID-19 pandemic(p.132)
- • Costa Coffee business experiencing substantial contraction and store closures(p.128)
- • High level of outstanding borrowings requiring debt repayment(p.99)
- • Loss-making operations requiring closure of underperforming stores(p.128)
- • Dependence on lease arrangements with risks of termination or non-renewal(p.143)
- • Dependence on Yum India for KFC and Pizza Hut operations and approval(p.151)
- • Non-exclusive development rights for Costa Coffee that can be granted to competitors(p.159)
- • Restrictive non-compete covenants limit business expansion(p.151)
- • Significant continuing fees and advertising contributions payable to brand owners(p.146)
- • Compliance burden with Yum India approval requirements for material changes(p.152)
- • Significant accumulated losses eroding net worth(p.214)
- • Negative equity at start of period(p.213)
- • High financial leverage with significant borrowings(p.248)
- • Material impairment of assets indicating operational stress(p.214)
- • Multiple loss-making subsidiaries and joint ventures(p.204)
- • Significant accumulated losses eroding net worth(p.308)
- • Current liabilities exceed current assets indicating liquidity pressure(p.308)
- • High borrowing levels with significant interest burden(p.264)
- • Heavy dependence on lease liabilities for operations(p.281)
- • Multiple store impairments indicating operational challenges(p.295)
- • Negative total equity position indicating capital erosion(p.305)
- • High debt burden with significant borrowing obligations(p.356)
- • Substantial contingent liabilities from tax authorities and legal proceedings(p.356)
- • Extensive food safety litigation posing operational risk(p.362)
- • Prior going concern uncertainty and accumulated losses history(p.357)
- • Material uncertainty regarding subsidiary valuations(p.357)
- • High concentration of lease liabilities and long-term payment obligations(p.356)
Opportunities
- • Expansion into new regions and store locations as strategic priority(p.43)
- • Menu innovation and localization to capture changing consumer preferences(p.43)
- • Leverage third-party logistics infrastructure for market penetration(p.44)
- • Growth in QSR sector driven by evolving consumer habits(p.43)
- • QSR channel forecast to grow at 12.4% CAGR from 2020-2025 with strong market tailwinds(p.130)
- • Growing delivery ecosystem and food aggregator platforms driving transactions(p.128)
- • Continued store expansion across India with strong market potential(p.133)
- • Costa Coffee channel forecast to grow at 15.0% CAGR from 2020-2025(p.133)
- • Opportunity to shift Pizza Hut towards delivery-focused smaller store formats(p.131)
- • Rapidly urbanizing India with growing middle class and consumption patterns(p.116)
- • Opportunity for international expansion in markets like Nigeria and Nepal(p.130)
- • Product innovation and menu customization in partnership with Yum brands(p.147)
- • Expansion of digital ordering and mobile payment capabilities(p.147)
- • Growing consumer preference for digital payment adoption(p.147)
- • Expansion through high-potential captive markets with Yum right of first refusal(p.158)
- • Development of own brands and diversification beyond core franchises(p.150)
- • Expansion of quick service restaurant brands across multiple formats(p.218)
- • Strategic store acquisitions to scale operations(p.241)
- • International expansion through existing subsidiaries(p.218)
- • Expansion of KFC franchise network in key South Indian markets(p.308)
- • Post-COVID recovery in food & beverage consumption(p.308)
- • Leveraging anticipated operational cash flows for debt reduction and expansion(p.308)
- • Available undrawn credit facilities to support growth initiatives(p.308)
- • Expansion of restaurant operations through capital investment(p.357)
- • Growing food and beverages market in India with expansion potential(p.360)
- • Acquisition of DASMPL to consolidate market presence(p.360)
Threats
- • Ongoing COVID-19 pandemic impact on in-store dining and store operations(p.29)
- • Restrictive government capacity and operating measures due to COVID-19(p.30)
- • Risk of store closure and supply chain disruptions from COVID-19(p.30)
- • Competitive QSR industry with international chains and emerging cloud kitchen formats(p.41)
- • Rising competition from cloud kitchens with lower capital requirements(p.40)
- • Real estate market volatility and rising commercial property costs(p.37)
- • Dependence on food delivery aggregators with potential fee increases(p.40)
- • Risk of food-borne illnesses and health-related incidents damaging brand(p.40)
- • Supplier disruptions and quality control risks(p.39)
- • Rising input costs and inflation eroding profit margins(p.44)
- • Increasing regulatory pressure on food safety and health concerns(p.44)
- • Supply chain disruptions from third-party logistics dependence(p.44)
- • Intense competitive pressure affecting marketing effectiveness and brand positioning(p.43)
- • Macroeconomic slowdown reducing consumer discretionary spending(p.59)
- • Rising labor costs and minimum wage pressures(p.44)
- • License and permit renewal delays impacting store operations(p.46)
- • Foreign exchange volatility affecting international operations(p.54)
- • Continued impact of COVID-19 pandemic on consumer behavior and store operations(p.128)
- • Regulatory and compliance risks affecting franchise operations and store locations(p.145)
- • Dependency on Yum Brands for strategic decisions and brand management(p.127)
- • Rising competition from international and local QSR chains(p.120)
- • Vulnerability to commodity price fluctuations and input cost pressures(p.130)
- • Exposure to foreign currency fluctuations in international markets(p.141)
- • Competitive intensity in QSR sector and competition for customer spending(p.150)
- • Termination risk for KFC and Pizza Hut arrangements due to covenant breaches(p.152)
- • Costa IDA termination risk and uncertainty over renewal terms(p.162)
- • Industry susceptibility to changes in consumer tastes and economic conditions(p.150)
- • Reliance on delivery aggregators and exposure to their pricing and policies(p.147)
- • Material uncertainty related to going concern in prior years(p.209)
- • COVID-19 pandemic impact on operations and financial performance(p.209)
- • Dependence on related party entities with own financial challenges(p.200)
- • Significant lease obligations creating fixed cost burden(p.249)
- • COVID-19 pandemic impact on restaurant operations and revenue(p.308)
- • Ongoing impact of COVID-19 creating revenue and demand uncertainty(p.308)
- • Store-level operational losses indicating challenging market conditions(p.295)
- • Exposure to foreign exchange fluctuation risks(p.278)
- • Significant contingent liabilities and tax disputes(p.290)
- • Interest rate risk on variable-rate borrowings(p.277)
- • Extensive food safety regulatory compliance requirements(p.372)
- • COVID-19 pandemic impact and operational uncertainties(p.357)
- • Competitive restaurant and food service industry(p.360)
- • Currency and foreign exchange exposure risks(p.359)
- • Economic inflation impacting business operations(p.359)
- • Litigation risks involving promoters and directors(p.368)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Ravi Kant Jaipuria | Individual Promoter | 0.18% | — |
| Varun Jaipuria | Individual Promoter | 3.43% | — |
| RJ Corp Limited | Corporate Promoter | 69.76% | — |
| RJ Corp | Promoter/Corporate Promoter | 69.76% | 59.44% |
| Varun Jaipuria | Promoter | 3.43% | 3.30% |
| Ravi Kant Jaipuria | Promoter | 0.18% | 0.17% |
| RJ Corp | Promoter | — | — |
| Ravi Kant Jaipuria | Promoter and director of the Corporate Promoter and Director of our Company | — | — |
| Ravi Kant Jaipuria | Promoter | — | — |
| Varun Jaipuria | Promoter | — | — |
| RJ Corp Limited | Promoter (Corporate Promoter/Holding Company) | — | — |
| Ravi Kant Jaipuria | Promoter | 73.38% (in aggregate with all promoters as at date of Prospectus) | — |
| Varun Jaipuria | Promoter | 73.38% (in aggregate with all promoters as at date of Prospectus) | — |
| RJ Corp Limited | Corporate Promoter | 73.38% (in aggregate with all promoters as at date of Prospectus) | — |
| RJ Corp Limited | Parent and Ultimate Controlling Party | — | — |
| RJ Corp | Corporate Promoter | — | — |
| Ravi Kant Jaipuria | Individual Promoter | — | — |
| Varun Jaipuria | Individual Promoter | — | — |
| Ravi Kant Jaipuria | Promoter/Non-executive Director and Chairman | — | — |
| Varun Jaipuria | Promoter/Non-executive Director | — | — |
| RJ Corp Limited | Promoter Selling Shareholder | — | — |
Leadership
Virag Joshi · Key Managerial Personnel
Anil Dwivedi · Company Secretary and Compliance Officer
Manish Dawar · CFO
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.
Devyani International IPO FAQs
What is the lot size of Devyani International IPO?
The minimum lot size of Devyani International IPO is 165 shares. One lot costs ₹14,850 at the cut-off price.
When does Devyani International IPO open and close?
Devyani International IPO opened for subscription on 04 Aug 2021 and closed on 06 Aug 2021.
What is the listing date of Devyani International IPO?
Devyani International IPO listed on 16 Aug 2021.