The initial public offering (IPO) of Devyani International was subscribed 3.74 times on its second day. The company received bids for 42.14 crore equity shares against an IPO size of 11.25 crore shares, MoneyControl reported.
Non-institutional investors bought 1.92 times their portion, while qualified institutional investors have put in bids for 77 per cent of their reserved portion.
The price band for the 1,838 crore IPO was fixed at Rs 86-90 per share. On Wednesday, the company gained Rs 824.87 crore through the offering. The issue has a minimum lot size of 165 shares and investors can bid multiples thereof.
According to the data by IPO Watch, the trading price for the IPO increased to Rs. 155, which is 72 per cent higher compared to its issue price of Rs 90.
“At upper price band, the company’s market cap to sales for FY21 stands at 9x which is attractive to the industry average of 11x. Thus, we recommend subscribing for the listing gains,” said Canara Bank Securities told MoneyControl.
Devyani International is the operator of the KFC and Pizza Hut quick service restaurants chain. The company was incorporated in 1991. It is led by Ravi Kant Jaipuria, promoter of RJ Corp, and Virag Joshi, President, and CEO. It is expected that post the IPO company will be debt-free.
