Devyani International Limited raises Rs 825 Cr from 41 Anchor Investors

Some Marquee names who have participated are ADIA, Government of Singapore, Fidelity, Jupiter Asset Management, Alliance Bernstein, and Nomura

 

Mumbai : Devyani International Limited (the “Company”), the largest franchisee of Yum Brands in India, and among the largest operators of chain quick service restaurants (“QSR”) in India (Source: Global Data Report), on a non-exclusive basis, operates Pizza Hut, KFC, and Costa Coffee stores, as well as stores of other brands such as Vaango, Food Street, Masala Twist, Ile Bar, Amreli and Ckrussh Juice Bar, has raised Rs. 825 crore from 41 anchor investors. The company informed the bourses that it has allocated 9.16 Cr shares at Rs. 90 per share on Tuesday, August 3, 2021 to anchor investors.

28 Foreign Portfolio Investors participated in the anchor book and of some of them were Abu Dhabi Investment Authority, Fidelity, Goldman Sachs, Monetary Authority of Singapore, Abu Dhabi Investment Council, Government of Singapore, Jupiter Asset Management, Nomura, NS Partners, Neuberger Berman, APG Asset Management, Carmignac, White Oak, Affin Hwang, Alliance Bernstein, Kuwait Investment Authority, Macquarie and were allocated approximate 5.87 cr equity shares amounting to Rs 528.31 crs i.e 64% of the Total Anchor Book Size.

 

13 domestic investors (including 6 mutual funds across 28 schemes, 6 Life Insurance company, 1 General Insurance Company) were allocated a total of 3,29,98,110 shares for Rs. 296.56 Crs i.e 36% of the Total Anchor Book Size. These included Aditya Birla MF, ICICI Prudential MF, Mirae Asset MF, Nippon Life MF, Tata Mutual Fund MF, Sundaram Mutual Fund, Aditya Birla Sunlife, HDFC Life Insurance, ICICI Prudential Life Insurance, SBI Life Insurance, Bajaj Allianz, Max Life Insurance Co and SBI General Insurance

 

Devyani International Limited is the largest franchisee of Yum Brands in India and are among the largest operators of chain quick service restaurants (“QSR”) in India (Source: Global Data Report), on a non-exclusive basis, and operate 655 stores across 155 cities in India, as of March 31, 2021. Yum! Brands Inc. operates brands such as KFC, Pizza Hut and Taco Bell brands and has presence globally with more than 50,000 restaurants in over 150 countries, as of December 31, 20201. In addition Devyani International Limited is the franchisee for the Costa Coffee brand and stores in India.

Kotak Mahindra Capital Company Ltd, CLSA India Pvt Ltd, Edelweiss Financial Services Ltd, Motilal Oswal Investment Advisors Ltd are the BRLMs to the Offer.

IPO Details

The IPO comprises a fresh issuance of Equity Shares aggregating to Rs. 4,400 million by the Company (“Fresh Issue”) and an offer for sale of up to 155,333,330 Equity Shares by the selling shareholders and promotors. The Company proposes to utilise the Net Proceeds towards (i) repayment/prepayment of all or certain of the Company’s borrowings; and (ii) general corporate purposes.

The Offer is being made through the Book Building Process, in terms of Rule 19(2)(b) of the Securities Contracts (Regulation) Rules, 1957, as amended (“SCRR”) read with Regulation 31 of the SEBI ICDR

Regulations and in compliance with Regulation 6(2) of the SEBI ICDR Regulations, wherein not less than 75 % of the Net Offer shall be allocated on a proportionate basis to Qualified Institutional Buyers (“QIBs”, the “QIB Portion”), provided that our Company and the Selling Shareholders may, in consultation with the Lead Managers, allocate up to 60% of the QIB Portion to Anchor Investors on a discretionary basis in accordance with the SEBI ICDR Regulations (“Anchor Investor Portion”), of which one-third shall be reserved for domestic Mutual Funds, subject to valid Bids being received from domestic Mutual Funds at or above the Anchor Investor Allocation Price. Further, 5% of the QIB Portion (excluding Anchor Investor Portion) (“Net QIB Portion”) shall be available for allocation on a proportionate basis only to Mutual Funds, and the remainder of the Net QIB Portion shall be available for allocation on a proportionate basis to all QIBs, including Mutual Funds, subject to valid Bids being received at or above the Offer Price. However, if the aggregate demand from Mutual Funds is less than 5% of the Net QIB Portion, the balance Equity Shares available for allocation in the Mutual Fund Portion will be added to the remaining Net QIB Portion for proportionate allocation to QIBs.

Further, not more than 15% of the Net Offer shall be available for allocation on a proportionate basis to Non-Institutional Bidders and not more than 10% of the Net Offer shall be available for allocation to Retail Individual Bidders in accordance with the SEBI ICDR Regulations, subject to valid Bids being received at or above the Offer Price. Further, Equity Shares will be allocated on a proportionate basis to Eligible Employees applying under the Employee Reservation Portion, subject to valid Bids received from them at or above the Offer Price.

 

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