Aequitas Research - Burger King India (BURGERKING) ... Devyani IPO

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Aequitas Research

Sumeet Singh

EUR 93.18 For Business Accounts Only

Devyani IPO

Devyani International Limited (DIL), Yum Brand’s largest franchisor in India, raised around US$250m via its Indian IPO.

DIL operates a chain of quick service restaurants (QSRs) in India. Its core business is to operate KFC, Pizza Hut and Costa Coffee in India. It operated 655 stores across 155 cities in India, as of Mar 2021. These include 264 KFC stores, 297 Pizza Hut stores and 44 Costa Coffee stores. It also operates stores in Nepal and Nigeria for KFC and Pizza Hut. In addition, it also runs its own brands Vaango, Food Street, Masala Twist, Ile Bar, Amreli, and Ckrussh Juice Bar in India. Yum owns over 4% stake in the company.

We covered various aspects of the deal in our previous notes, Devyani Pre-IPO - Might not do another Burger King India but should be good, Devyani Pre-IPO - Peer comparison - slots in neatly, Devyani Pre-IPO - Thoughts on valuation and Devyani IPO - Still some upside on un-adjusted EBITDA basis.

In this note, we will talk about the trading dynamics.

13/08/2021 5 EN

Underlyings

Burger King India

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INE07T201019 National Stock Exchange of India India

Devyani International Ltd

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Jubilant Foodworks Limited

Jubilant FoodWorks Limited is a food service company. The Company operates through Food and Beverages segment. The Company and its subsidiary have rights to develop and operate Domino's Pizza brand in India, Sri Lanka, Bangladesh and Nepal. It operates in India and Sri Lanka. It has a right for developing and operating Dunkin' Donuts restaurants for India. Domino's Pizza India operates approximately 1040 restaurants in India located in states and union territories, covering approximately 240 cities across the country. Dunkin' Donuts sells a range of donuts and over a dozen coffee beverages, as well as an array of bagels, breakfast sandwiches and other baked goods. The Company has approximately 70 Dunkin' Donuts restaurants in India. It offers Chocolate Donut, Break-up Party Eclair, Chocofix Donuts, Big Joy Burger, Naughty Lucy Burger, The Tough Guy Burger, Too Much Burgers range, Wicked Wraps, the iconic Dunkin' Original Drip Coffee, Dunkaccinos and Spiked Iced Tea, among others.

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INE797F01012 National Stock Exchange of India India

Provider

Aequitas Research

Aequitas Research is a leading ECM research firm with a focus on IPOs and placements/follow-on offerings across the Asia Pacific with deal size of over USD100m.

Since 2015, we have covered 400+ IPOs and 450+ placements with a hit rate of 73% and 65%, respectively. We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic analysis.

Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis. We also provide a more quant driven analysis on placement/follow-on offerings.

Markets that we cover include:
Hong Kong,
China ADRs,
India,
Japan,
Australia, and
ASEAN.

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Analysts

Sumeet Singh

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Devyani IPO

MOSL: JUBILANT FOODWORKS: Growth prospects attractive, moats widening

MOSL: JUBILANT FOODWORKS (Buy)-Strong performance; well on track to meet its store expansion guidance

JUBILANT FOODWORKS sees a downgrade to Slightly Negative on account of less fundamental stars

Onewo Space-Tech Pre-IPO

Legend Biotech Follow-on Offering

Xtep International Placement

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