Devyani International Limited, the operator of quick-service restaurants chains like KFC, Pizza Hut, and Costa Coffee, is expanding, Ravi Kant Jaipuria, chairman, told CNBC-TV18.

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The company made a stunning debut on Monday (Aug 16) as the stock was 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.

Also Read: Devyani International lists at 56% premium at Rs 141 on bourses

“In the last 6 months we have opened more than 100 stores and we hope this trajectory can continue. We are expanding mainly with KFC and Pizza Hut. And the Costa agreement has been signed, so Costa Coffee stores will start opening up also,” Jaipuria said.

According to him, most of the stores mature within one year. “In a small town, it starts maturing in the first month or two months, whereas in a mature town it takes between three and six months to mature. So it's basically in the first year most of our stores mature so we don't have really a long gestation period,” said Jaipuria.

The company expects recovery by end of August or early September.

"The business is reasonably back to normal and could be always better once complete lockdown is out,” said Jaipuria.

“In KFC, it has gone to 60 percent delivery and 40 percent dine-in, which we believe will come back to about 50-50 going forward and once everything becomes normal, it might reverse which is 60 percent dine-in and 40 percent delivery. Whereas in Pizza Hut, it is 90 percent delivery and most of it will remain close to 90 percent delivery,” he added.

Devyani International’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.

For the entire management interview, watch the video

(Edited by : Abhishek Jha)