Ravi Jaipuria, the Delhi-based billionaire promoter of Devyani International Ltd, the largest franchisee of Pizza Hut, KFC, and Costa Coffee in India, and his son Varun Jaipuria have sold Devyani shares worth ₹250 crore in a round ahead of the company’s initial public offering (IPO), which opens on 4 August.
Devyani International has fixed a price band of ₹86-90 a share. The IPO, which will close on 6 August, comprises a fresh issue of ₹440 crore and an offer for sale of issuing up to 155.33 million shares by its existing shareholders and promoters. The firm will raise ₹1,838 crore at the upper end of the price band.
IIFL Special Opportunities Fund picked up shares worth ₹100 crore, SR Foundation bought shares worth ₹75 crore, Dharampal Satyapal Ltd bought shares worth ₹25 crore, and DLF Urva Real Estate Developers and Services Pvt. Ltd bought shares worth ₹15 crore, according to a regulatory filing. Individual buyers also picked up shares, according to the filing. The aggregate promoter shareholding stands at 73.38% after the sale of these shares, the filing said.
Devyani will use the proceeds from the IPO to repay some or all borrowings of its firm. The aggregate outstanding borrowings of the company on a consolidated level were ₹541.59 crore as of June 2021.
The firm operates 297 Pizza Hut stores, 264 KFC stores, and 44 Costa Coffee as on 31 March 2021 in India.
Source: Mint