Devyani International Limited IPO – The Initial Public Offering (IPO) of Devyani International Limited opened on 4 August 2021 – Wednesday. The three-day IPO will end on 6 July (Friday). The company operates quick service restaurants like Costa Coffee, KFC and Pizza Hut. What should the investors do about this issue? 

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Till 3:46 pm, the issue was subscribed 1.49 times. Meanwhile, the retail investors subscribed 5.96 times. The Qualified Institutional Buyers (QIBs) subscribed it 0.68 times while the non-institutional investors subscribed it 0.17 times around this time. These are very early trends and the issue is expected to get higher subscription in various categories over the remaining priod. 

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The company is planning to raise Rs 1838 cr through this issue. The IPO comprises of a fresh issue of up to Rs 440 cr and an Offer for Sale (OFS) of up to 155,333,330 equity shares.   

The Retail Individual Investors (RIIs) have been allocated 10 per cent of the overall shares available for subscription. For Qualified Institutional Buyers (QIBs), 75 per cent of the entire issue is reserved while for non-institutional investors (NII) 15 per cent shares have been allocated. 

Devyani International Limited IPO - Top 10 things to know  

  1. The stock will be listed as Devyani International Limited and the symbol will be Devyani.   
  2. The issue period will be between 4 August 2021 and 6 August 2021.   
  3. Issue Type is 100 per cent Book Building   
  4. The Price Band is Rs 86 to Rs 90   
  5. Face Value is Re 1   
  6. Ticket Size is Re 1   
  7. The Bid Lot consists of 165 equity shares and in multiples thereof. Minimum order quantity is 1 lot i.e. 165 equity shares.   
  8. For retail investors maximum subscription amount is Rs 200,000 while maximum subscription amount for eligible employee is Rs 500,000.   
  9. Post issue Modification Period is 9 August 2021 between 10 am and 11 am.   
  10. Cut-off time for UPI Mandate Confirmation - 9 August 2021 up to 12 pm.   

Devyani International Limited IPO – Complete timeline 

  1. Issue ends on 6 August, Friday.  
  2. Finalisation of basis of allotment likely on 11 August  
  3. Initiation of refunds likely on 12 August  
  4. Transfer to demat accounts likely on 13 August  

Devyani International Limited IPO – What Anil Singhvi recommends 

  1. Market Guru recommends investment in this public issue for BIG LISTING GAINS and also for long term investments.  
  2. He said that the brand is very strong which cuts across all age groups.  
  3. Promoters are also highly experienced in this segment. The company runs several brands which makes this company quite diversified, Singhvi said. This also reduces risks and increases growth potential. 
  4. The Anchor Book is also quite strong, he further said. 
  5. The company has to still make profits as there are some negatives. But, Zomato IPO has taught investors that even if the company is not making profits, investors can still make money, the Market Guru said. 
  6. This is one IPO which can see a two-fold jump in share price on listing, Singhvi said. It is a must apply IPO.       

Global Coordinators and Book Running Lead Managers (BRLMs) include Kotak Mahindra Capital Company Limited, CLSA India Private Limited and Edelweiss Financial Services Limited. The BRLM are Motilal Oswal Investment Advisors Limited while the sponsor bank is Axis Bank Limited. Name of the Registrar is Link Intime India Private Limited    

The Book Running Lead Managers (BRLM) are SBI Capital Markets Limited, DAM Capital Advisors Limited, IIFL Securities Limited. The sponsor bank is HDFC Bank Limited. The issue is open for these categories of investors - FI, IC, MF, FII, OTH, CO, IND and NOH.   

The name of the registrar is Link Intime India Private Limited.   

Devyani International Limited IPO - Objectives:   

The object of the issue is to repay and/or prepay borrowings and general corporate purpose.