The Mauritian company Dunearn Investments will sell almost 3% of its stake in Devyani International

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By CNBCTV18.com STI (Update)

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Devyani International is the largest franchisee of Yum Brands in India. The company operates 655 stores in 155 cities nationwide, as of March 31, 2021. This includes brands like KFC, Pizza Hut, Costa Coffee, Vaango, The Food Street and more.

Mauritius-based Dunearn Investments Pte Ltd plans to sell nearly 3% of its stake in quick-service restaurant chain operator Devyani International via a block deal, sources told CNBC-TV18. Dunearn Investments currently holds a 16.26% stake in Devyani International.

Kotak Securities will broker the transaction.

Shares of Devyani International opened 5.18% lower on Tuesday on BSE. The stock hit an intraday low of 6.91%. Shares of Devyani International have lost over the past four days and have fallen 11.68% over the period.

The price range was set at Rs 182-196.25 per share, with a discount of 7%. The base offering is 2.6 crore shares (2.19% equity) with an option to increase to 87.76 lakh shares (0.73% equity). The total deal size is $80-86 million.

Devyani International is the largest franchisee of Yum Brands in India. The company operates 655 stores in 155 cities nationwide, as of March 31, 2021. This includes brands like KFC, Pizza Hut, Costa Coffee, Vaango, The Food Street and more.

The company had reported 100% year-on-year growth in operating revenue to Rs 705 crore from Rs 353 crore in the previous quarter. Earnings before interest, tax, depreciation and amortization (EBITDA) increased by 167% from a year earlier to Rs 164 crore. EBITDA margin was 23.3% for the quarter.

The margin improved by 590 basis points, compared to 17.4% for the corresponding period last year. Margins fell 100 basis points sequentially, down 24.3% from the prior quarter. Profit after tax (PAT) stood at Rs 74.5 crore, compared to Rs 33.4 crore in the corresponding period of the previous financial year and Rs 75.9 crore in the previous quarter.

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