- Devyani International IPO opens today: The company, which operates brands like Pizza Hut, KFC and Costa Coffee, has kept its price band at Rs 86-90 per share.
- Experts say on all latest IPO in August.
- Three IPOs also opened today.
The IPO of Devyani International, the largest franchisee of Yum Brands and operator of Quick Service Restaurants in the country, opened today. The company, which operates brands like Pizza Hut, KFC and Costa Coffee, has kept its price band at Rs 86-90 per share. The company will get Rs 1,838 crore from the IPO as per the above band. The company’s top price brand valuation is 9.5 times the financial position of the last financial year. In comparison, Jubilend Foodworks has 15 times the valuation in this segment, West Life Development has 8.8 times, and Burger King has 14 times. The company’s stock is currently trading at a premium of Rs 62 in the grey market.
Most of the experts have advised filling this IPO. He believes that the company’s valuation is low, and it can grow in the long run. QSR’s trade has grown at a CAGR of more than five per cent in recent years, which is likely to accelerate.
The company is expanding its stores for growth. The big risk here, however, is that the company is running at a loss. The company has been running at a loss for the last three years. Nevertheless, Devyani International’s EBIDTA margin has been good with 17.3 per cent in the last two financial years. The company’s position is also good in terms of cash flow.
The company is running at a loss: Experts are worried about the company’s profits. The company has been running at a loss for the last three years. However, the company’s EBIDTA margin is 17.3 per cent which can be improved. The company also has no worries about cash flow.
The IPO is open for subscription next today (August 4) in which investors can bid till August 6. The company raised Rs. 440 crore fresh issue will be announced. At the same time, 15.53 crore equity shares will be made available through Offer for Sale (OFS). Out of the funds raised from this issue, Rs. 324 crore will be used to repay the loan. At the same time, the money for the offer for sale will be with the company’s shareholders.
The three IPOs also opened today:
Windlas Biotech:
The IPO of Domestic Pharmaceutical Formulation Contract Development and Manufacturing Organization (CDMO) opened today. The company will raise Rs 401.53 crore through an IPO. The price brand of this IPO is Rs 448-460. There will be a fresh issue of Rs 165 crore while the existing shareholders will sell 51,42,067 equity shares. The company’s issue will close on August 6.
Proceeds from the Windlas Biotech Fresh issue will be used to purchase various equipment to increase the capacity of the existing plant at Dehradun. It will also use Rs 50 crore to increase injectable dose capacity at another plant in Dehradun, Rs 47.56 crore to meet various needs, and Rs 20 crore to pay the balance.
Exxaro Tiles IPO: Exxaro Tiles, a company that manufactures vitrified tiles, has set a price band of Rs 118-120 for its proposed IPO. The IPO opened today while closing on August 6. The company will issue 1,34,24,000 equity shares through an IPO, with a fresh issue of 1,11,86,000 shares. There will also be an offer for the sale of 22,38,000 equity shares. Dixit Kumar Patel will sell his shares in the offer for sale.
Of which 2,68,500 shares will be reserved for the employees of the company. The lot size of the IPO will be in multiples of 125 shares. The company will use Rs 50 crore from the IPO to pay off debt and Rs 45 crore to meet its working capital requirement. Exxaro Tiles has two plants with a capacity of 12 million square meters.
Both these plants are in Vadodara and Himmatnagar of Gujarat. The company has 120 acres of land and an installed production capacity of 94 lakh square meters per year. The company had a revenue of about Rs 244 crore a year ago and a net profit of Rs 11.26 crore.
Krsnaa Diagnostics: The company has kept the price band 933-954 for its IPO. The IPO opened today and will close on August 6. The company will raise Rs 1,213.76 crore through the IPO. New shares worth Rs 400 crore will be announced in the IPO. In addition, 85.3 lakh shares will be offered for sale by promoters and shareholders.
Funds raised from the public offer will be used to open diagnostic centres in Punjab, Karnataka, Himachal Pradesh and Maharashtra. In addition, the company will use about Rs 125 crore to pay off debt. The company had a debt of about Rs 142 crore at the end of June. The company had total revenue of Rs 661.48 crore in the previous financial year as against Rs 271.38 crore in the previous year. The company’s net profit rose to Rs 184.93 crore from Rs 111.95 crore.
Source from Divya Bhaskar
