Mauritius-based Dunearn Investments to sell nearly 3% stake in Devyani International, shares fall 7%

The price range has been fixed at Rs 182-196.25 per share, at a 7 percent discount. The base offer is of 2.6 crore shares (2.19 percent equity) with an upsize option of 87.76 lakh shares (0.73 percent equity). The total deal size is of USD 80-86 million.

Devyani International is the largest franchisee of Yum Brands in India. The company operates 655 stores across 155 cities in the country, as of March 31, 2021. These includes brands like KFC, Pizza Hut, Costa Coffee, Vaango, The Food Street and more.

The company had reported a 100 percent year-on-year growth in revenue from operations at Rs 705 crore, up from Rs 353 crore in the year ago quarter. Earnings before interest, taxes, depreciation, and amortization (EBITDA) rose 167 percent from year-ago period to Rs 164 crore. The EBITDA margin stood at 23.3 percent for the quarter.

The margin improved by 590 bps, from 17.4 percent in the corresponding period  in the previous fiscal. The margins fell 100 bps sequentially from 24.3 percent from the previous quarter. Profit after tax (PAT) stood at Rs 74.5 crore, up from Rs 33.4 crore in the corresponding period  in the previous fiscal and Rs 75.9 crore in the previous quarter.