Important Things To Make Sure Before Buying Devyani International IPO
- IPO Stocks
Yaseer Rashid- 0
- 10 minutes read
Amid this IPO (Initial Public Offering) season, one of the frequently asked questions has been how to fill the IPOs. So in this article, we will see how to apply for an IPO. The Devyani International IPO is an upcoming IPO that is scheduled for opening on August 4, 2021. Devyani International is the largest chain of Yum Brands in India which operates quick service restaurant brands like KFC, and Pizza Hut, along with their own brand.
Should You Invest In IPO Of Devyani International Which Is Making Loss Now?
The company has witnessed record loss in the last 3 consecutive financial years but it is believed by the analysts that this is not a big concern and the investors are advised to face the problem. According to them, the stocks that are being offered are comparatively cheaper based on Ebitda and their sales.
Devyani International is going to list at an Ebitda/EV of 62.39 while it’s market competitor Jubilant Foodworks and Westlife Development is trading at EV/Ebitda ratios of 66.02 and 206.11 respectively.
At the upper side of the issue price band, the post issue of FY21 EV/sales operates out to 9.9 times, which is very low compared to its competitors. According to an official from a brokerage firm,
“Furthermore, Devyani International has a better operating margin compared with Westlife Development and Burger King. We believe this valuation is being done at a reasonable level. Thus, we recommend a ‘subscribe’ rating on the issue.”
Devyani International IPO share price has been fixed at a range of Rs 86-90. The company focuses on raising Rs 1,838 crore via a new share issue that aggregates to Rs 440 crore and an OFS (Offer For Sale) of up to Re 15.53 crore.
The proceeds of the Devyani International IPO will be utilized by the firm in paying their debt and for some more corporate uses. Of the shares offered, 75% is booked for institutional investors, 15% for the investors having high net worth, and the remaining 10% for retail investors. Nearly 5.50 lakh shares are booked for their employees. The Devyani International IPO lot size is 165. If the investors wish, they can also apply for an issue in a bunch of 165 shares and multiples of that henceforth.
The company has operated nearly 284 KFC stores, 44 Costa Coffee, and 317 Pizza Hut stores in India till June 30, 2021. It also looks after stores in Nigeria, and Nepal. The brands that are owned by this company include Food Street, Vaango, Masala Twist, Amreli, Ile Bar, and Crussh Juice Bar.
According to another broker,
“We assign ‘subscribe’ rating to this IPO as the company is a comprehensive multidimensional QSR player with a portfolio of highly recognized global brands and is available at reasonable valuation as compared to its peers.”
How To Apply In Devyani International IPO?
To invest in this Devyani International IPO, you will require to apply to purchase a “lot of share” from the share market. The bidding of IPOs generally remains open for 3 days, especially during the market hours. In the case of Devyani International IPO listing date, it is from August 4 to August 6.
Through Zerodha Kite App
For investing in an IPO a Demat account, a trading app like Angel Broking or Zerodha, and a UPI ID on the BHIM app is required. One of the easiest and most efficient ways to track IPOs and invest in them is through various trading platforms. Here are steps by which you can invest in Devyani International IPO through Zerodha Kite App:
- Login to the Zerodha Kite app and select IPO under the console section. And if you are logging in through your desktop then go to console – portfolio – IPO.
- There you will find a huge list of IPOs that is open for investment. Choose the IPO that is appropriate for you.
- Then enter your UPI ID from the BHIM app. Make sure that your UPI ID is linked to your personal bank account.
- Now enter the size of your lot that has been announced by the company.
- Click on the cut off value for more opportunities of allotment of shares as it points to the willingness of the investor towards Devyani International IPO subscription, at any price range that has been discovered within the price band. In this case, the cut of price is the issue price.
- For retail investors, the maximum bidding is for 3 lots.
- After completion of this step, click on the check box to verify and submit.
- The final step is the acceptance of the mandate request for proceeding with IPO on your UPI app. Once the mandate is accepted by you, the number of funds required for investing in the IPOs will be blocked till the allotment.
- Now you will have to wait for the date of allotment of the shares to check if the lot size has been received by you for bidding.
Through Upstox
In the case of Upstox, the process is hassle free and easy. You may want to invest in IPOs through Upstox. So to make your jobs easier, here are steps by which you can invest in IPOs through Upstox.
- Login to the Upstox account through their website or app with your credentials.
- Choose the IPO that you wish to invest in and design an IPO application.
- Add a maximum of 3 bids within the price range that has been announced by the company.
- Verify and confirm your application.
- Accept the UPI mandate and then block your funds on your mobile UPI app.
Through Bank Account
The bank account scenario in investing in an IPO is no different. It is the oldest form of investment and is the most effective one.
- Log in to the net banking account of your bank.
- Go to the investment part and choose the IPO option.
- Fill in your bank account and investment details to fulfill the verification process.
- Later choose the IPO you wish to apply for.
- Enter the lot of shares and bid price.
- Read and accept the ‘terms and conditions’ section.
- Submit your application.
Conclusion
Is Devyani International IPO good or bad? According to IPO experts, the margin offered by Devyani International is better than its competitors. So even if the company is at loss presently, thinking of the future, investors should consider investing in this IPO stock.
