Devyani International, the largest franchisee of Pizza Hut, KFC and Costa Coffee in India, on July 20 received capital market regulator Securities and Exchange Board of India’s (SEBI’s) approval for its initial public offering (IPO).

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The quick-service restaurant player had filed its draft red herring prospectus (DRHP) with SEBI on May 19, 2021.

Devyani International plans to raise Rs 1,400 crore. The IPO consists of a fresh issue of equity shares worth Rs 400 crore and an offer of sale of up to 125,333,330 equity shares by the promoter and existing shareholder, according to the DRHP.

Under the offer for sale, Dunearn Investments (Mauritius) Pte Ltd, a wholly-owned subsidiary of Temasek Holdings, will sell 65,333,330 shares and promoter RJ Corp will offer six crore shares, it added.

The company proposes to utilise the proceeds from the fresh issue to retire debt and general corporate purposes.

Devyani International is an associate company of RJ Corp, the largest bottling partner of food and beverages (F&B) major Pepsico, and has an interest in the Indian retail food and beverages (F&B) sector.

The company is the largest franchisee of Yum Brands, operating core brands such as Pizza Hut, KFC, and Costa Coffee besides its own brands like Vaango, Food Street, Masala Twist, Ile Bar, Amreli and Ckrussh Juice Bar.

Devyani International currently operates 297 Pizza Hut stores, 264 KFC stores and 44 Costa Coffee in India as of March 2021.

Kotak Mahindra Capital Company, CLSA India, Edelweiss Financial Services and Motilal Oswal Investment Advisors are the book running lead managers to the issue.

(Edited by : Kanishka Sarkar)