Devyani International Ltd. share price target

Devyani International Ltd (DIL) is the largest franchisee of Yum Brands in India and is among the largest chain operators of quick service restaurants (QSR) in India on a non-exclusive basis, and operates 696 stores across 166 cities in India, as of June 30, 2021.Yum! Brands Inc. operates brands such as KFC, Pizza Hut and

IPO Note

Devyani International Limited IPO Note Issue Open: Aug 04 Aug 06 2021 Price Band: Rs. 86 90 *Issue Size: 204,222,219 eq shares (Fresh Issue of Rs.440 cr + Offer for sale of 155,333,330 eq sh) Issue Size: Rs.1756.31 1838.0 cr Reservation for: QIB atleast 75% eq sh Non Institutional Upto 15% eq sh Retail Upto 10% eq sh Employee Upto 550,000 eq sh

We recommend subscribe to IPO of DIL. We believe DIL is on the verge of a new growth phase for the company led by 1) KFC's leadership in Chicken segment 2) strong brand recall and growth prospects of Pizza hut with just 297 stores (1300+ by Dominos) 3) Acquisition of 73 KFC stores of Yum over past 3 years 4) Aggressive expansion with addition of 90 stores in the last 6 months and likely hood of sustaining trend 5) move towards smaller delivery formats for KFC & Pizza Hut (share of delivery up from 50-70% between FY20/21) to achieve faster growth and higher margins and lower payback...