Devyani International shares make strong debut on D-Street; list at 56% premium to IPO price

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Updated: August 16, 2021 9:51 AM

Devyani International shares listed on the stock exchanges today with a strong premium over the IPO prices while the overall market was trading with losses.

Devyani International IPODevyani International shares began trading on the stock exchanges today. (Image: REUTERS)

Devyani International shares listed on the stock exchanges today with a strong premium over the IPO prices while the overall market was trading with losses. Shares of the company began to trade at Rs 141 per share, up 56.67% from the upper end of the IPO price of Rs 90 per share. Devyani International, the largest operator of quick-service restaurants in India is the largest franchisee of Yum brands in India and operates brands KFC & Pizza Hut. Devyani International’s IPO was subscribed 116 times earlier this month with all category of investors oversubscribing their portion of the IPO. 

Check Live price: Devyani International 

Devyani International raised Rs 1,838 crore from the IPO, which was a mix of a fresh issue of equity shares worth Rs 440 crore and the remaining an offer for sale (OFS) by existing shareholders of the company. Post issue the shareholding of the promoter group in the company has dropped to 65.2% from the 75.8% earlier while public shareholding has increased to 34.8% from 24.2% earlier. Qualified Institutional Buyers (QIB) had subscribed to the IPO 95.27 times the portion reserved for them. Non-Institutional Investors had bid for 213 times their portion while retail investors subscribed to the IPO 39.48 times the portion reserved for them.

Analysts at ICICI Direct believe the IPO was priced at 7x price/sales (post issue) FY20 on the upper end of the issue price band. “We believe DIL would be able to capture the growth owing to metro lifestyle and outside food habits. This, coupled with the company’s cost rationalisation initiatives will help drive profitability in future,” they said in a note while pinning a ‘subscribe’ rating on the issue.

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