Devyani International Limited, the largest franchisee of Pizza Hut, KFC and Costa Coffee in India, made a stunning debut on Monday as the stock listed with a 56 percent premium over the issue price on the bourses.
It opened at Rs 141 on the Bombay Stock Exchange (BSE) and Rs 140.90 on the National Stock Exchange (NSE), against an issue price of Rs 90 per share.
Devyani International’s Rs 1,838-crore initial public offer (IPO) garnered a stunning response from the investors when it opened for subscription earlier this month.
The public issue was oversubscribed by 116.71 times. According to the data available at the stock exchange, investors put a bid over 1,313.79 crore shares against the total issue size of over 11.25 crore.
The portion reserved for qualified institutional buyers’ (QIB) category was subscribed 95.27 times, while that reserved for non-institutional investors (NII) was subscribed 213.06 times. Retail individual investors’ segment was booked 39.51 times. The IPO allotment was finalised last week.
Devyani International’s shares were trading at Rs 55-57 on the unofficial market prior to the listing. The company’s grey market premium was trading at Rs 145-147, about 60 percent more than the issue price, pointing to a healthy stock listing on the BSE and NSE.
Devyani International’s public issue consisted of a fresh issue of up to Rs 440 crore and an offer for sale of up to 15,53,33,330 equity shares. The company’s IPO was priced between Rs 86-90 per share while the allotment was done at Rs 90. Devyani International had earlier mobilised Rs 825 crore from anchor investors.