The initial public offering (IPO) of Devyani International, the operator of popular brands Costa Coffee, Pizza Hut and KFC in India, opened today (4 August).
The proceeds from the fresh issues will be used to repay borrowings and for general corporate purposes while shareholders selling their portion will get money from the offer for sale (OFS).
Here are the key points about the Devyani International IPO:
The price band of the Devyani IPO has been fixed at Rs 86 to Rs 90 per equity share.
As much as 75 percent of the total offer has been reserved for qualified institutional buyers. While 15 percent has been reserved for non-institutional investors, 10 percent of the portion has been reserved for retail investors. For the employees of the company, 5.5 lakh equity shares have been offered.
At the higher end of the price band, Devyani International aims to raise up to Rs 1,838 crore.
Bidders can subscribe to a minimum of 165 equity shares. They can bid in the multiples of 165 thereafter. The maximum a retail investor can bid for is 13 lots.
The minimum investment for retail investors is Rs 14,850 for one lot. On the other hand, the maximum investment for 13 lots would be Rs 1,93,050 for 13 lots.
The IPO comprises a fresh issue of Rs 440 crore. It also includes an offer for sale (OFS) of 15,53,33,330 equity shares by investor and promoter. As many as 6,53,33,330 equity shares will be sold by an investor of the company Dunearn Investments. Its promoter RJ Corp will sell 9 crore equity shares through OFS.