By Aditya Raghunath
Investing.com -- Devyani International’s IPO, the largest franchisee of fast food majors Pizza Hut, KFC and Costa Coffee in India, has opened today. The price band for the shares is Rs 86-90 per share.
The company posted a loss of Rs 62.98 crore in FY21 compared to a loss of Rs 121.42 crore in FY20. Revenue in FY21 fell to Rs 1,134.84 crore from Rs 1,516.4 crore in FY20. Topline in FY21 was also impacted due to COVID lockdowns.
That said, brokerages are positive on the company as they believe it is fairly valued compared to its peers. "Considering the FY21 adjusted EBITDA of Rs 178.92 crore on post issue basis, the company is going to list at EV/EBITDA of 62.39 with a market cap of Rs 10,822.7 crore, while its peers namely Jubilant Foodworks (NS:JUBI) and Westlife Development are trading at EV/EBITDA of 66.02 and 206.11, respectively," said Marwadi Financial Services.
BP (LON:BP) Equities has given the IPO a subscribe for the long term as it feels there are visible growth drivers and that the company will continue to improve its finances. Anand Rathi, Angel Broking and Prabhudas Lilladher have also given the IPO a subscribe call.
Canara Bank (NS:CNBK) Securities and Religare Broking have said investors can also subscribe to the issue for listing gains.