Equity Analyst, LightStream Research

Oshadhi Kumarasiri

An equity research analyst with over 7 years of experience in multiple sectors. Previously worked for one of the world's largest asset managers with about USD2.5trn in AUM, covering small and micro-cap companies in the consumer sphere across Europe and developed Asia. Also experienced in covering multiple industries including banking, insurance and asset management, retail, tech, telco and REIT.

Equity Analyst

Devyani International IPO: Subscribed 116.7x, Poised for Big Gains on Debut

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Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

Equity Capital Markets

Devyani International  / Equity Capital Markets

<ul>
<li>
The IPO of <a href="https://www.smartkarma.com/entities/devyani-international-ltd" target="_blank" data-smartkarma-citation="entities:33519:1" rel="noopener">Devyani International (6590204Z IN)</a>, franchisee of Pizza Hut, KFC and Costa Coffee restaurants in India, will open for subscriptions on 4th August 2021. The offer closes on Friday, 6th August 2021.</li>
<li>Devyani International IPO consists of a primary issue of INR 4.4bn and a secondary offer of up to 155.33 million shares by promoter RJ Corp (90.0m shares) and existing shareholder Dunearn (65.33bn) at INR 86.0-90.0 per share.</li>
<li>Net proceeds from the IPO will be used to pay down INR 3.24bn out of total borrowings of INR 5.42bn as of 30th June 2021.</li>
<li>Due to the success of recent IPOs such as Zomato and a relatively lower valuation multiple compared to peers, Devyani International shares are currently trading at INR 130.0-140.0 per share in the grey market, which is 44-56% higher than the high end of the IPO offer range.</li>
<li>Nevertheless, we remain skeptical about the company’s medium-term price performance due to the following reasons.</li>
</ul>



The IPO of Devyani International (6590204Z IN), franchisee of Pizza Hut, KFC and Costa Coffee restaurants in India, will open for subscriptions on 4th August 2021. The offer closes on Friday, 6th August 2021.
Devyani International IPO consists of a primary issue of INR 4.4bn and a secondary offer of up to 155.33 million shares by promoter RJ Corp (90.0m shares) and existing shareholder Dunearn (65.33bn) at INR 86.0-90.0 per share.
Net proceeds from the IPO will be used to pay down INR 3.24bn out of total borrowings of INR 5.42bn as of 30th June 2021.
Due to the success of recent IPOs such as Zomato and a relatively lower valuation multiple compared to peers, Devyani International shares are currently trading at INR 130.0-140.0 per share in the grey market, which is 44-56% higher than the high end of the IPO offer range.
Nevertheless, we remain skeptical about the company’s medium-term price performance due to the following reasons.


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