Devyani International to launch IPO next week

New Delhi: Amidst the prevailing bullish sentiment in the primary market, Devyani International will launch its initial public offering (IPO) on Wednesday, August 4.

The issue can be subscribed till August 6, the company's red herring prospectus said. The company is expected to raise Rs 1,400 crore from the IPO.

The IPO consists of issuance of fresh equity shares worth up to Rs 440 crore with a face value of Re 1 each. The promoter and existing shareholders will offload 155,333,330 equity shares from their holding.

The promoter and existing shareholders participating in the IPO include Dunearn Investment (Mauritius) and RJ Corp.

The company has reserved up to 550,00 equity shares for the eligible shareholders of the company. It has reserved 75 per cent of the net issue for qualified institutional buyers (QIBs) and 15 per cent shares are allocated to non-institutional bidders (NIIs). Retail investors will get the remaining 10 per cent allocation.

The net proceeds from the issue will be utilised for the repayment of certain borrowings of up to Rs 324 crore and general corporate purposes.

Devyani International would be the third quick service restaurant (QSR) player to list in the past eight months after Burger King and Barbeque Nation.

The company has appointed Kotak Mahindra Capital Company, CLSA India, Edelweiss Financial Services and Motilal Oswal Investment Advisors as the global co-ordinators and book running lead managers (BRLMs) of the issue.

Link Intime India has been appointed as the registrar for the issue. Shares of Devyani International will be listed on both BSE and NSE.

RJ Corp-backed Devyani International had filed for the IPO to raise Rs 1,400 crore in May this year and received Sebi’s nod for the same last week.