The public offering of Devyani International, KFC operator and Pizza Hut for fast food services, is now 3.74 times higher as it has received 42.14 crore equity bids compared to the IPO size of 11.25 crore shares, trade-related data is available for trade. August 5th.
Commercial investors continued to exacerbate the IPO madness as the allotted share was 15.46 times registered and those for employees saw a 1.83 double enrollment.
Eligible institutional investors make bids with 77 percent of their set portion and non-institutional investors buy 1.92 of their set aside shares.
Devyani International aims to raise R8,838 million through its initial public offering which includes a new release of R440 million and a promise of a sale of R3,398 million by Dunearn Investments and RJ Corp. The new proceeds will be used to pay off debts.
The company has already collected Rs 824.87 crore for its public release at the end of the price of Rs 86-90 per share.
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The trading premium in the gray market has been raised to Rs 65 today, showing IPO Watch data. This resulted in a trading price of Rs 155, which is 72 percent higher compared to its release price of Rs 90.
The strong trading volume in the gray market has shown that the list price is significantly higher than that of Zomato, a restaurant aggregator and food delivery company, which was listed at 52.63% of the premium last month.
Devyani International Limited is one of the largest chains of fast food restaurants with premium products such as KFC and Pizza Hut. This provides a great opportunity to grow their business through food delivery aggregators like Swiggy and Zomato.
“At the highest level, the company’s market price for selling FY21 stands at 9x which is an attraction for the 11x industry. Therefore, we recommend that you sign up for a profit list,” said Canara Bank Securities.
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The largest franchisee of Yum Brands in India has successfully moved towards a business model to expand assets to reduce capex / operating costs. Submit an IPO, the company will not be able to pay the bills. “This will reduce the cost burden (15 percent of revenue) and make the company more profitable,” said the trading company.
In addition, the company has plans to acquire existing Yum brand KFC and pizza hut stores.
