Devyani International tanks 7% after over 2% equity traded via block deals

At 09:15 am, around 28.95 million equity shares representing 2.4 per cent of the total equity of the company changed hands on the BSE, the exchange data shows.

Shares of Devyani International (DIL) tanked 7 per cent to Rs 182.50 on the BSE in Tuesday’s intra-day trade after over 2 per cent of the total equity of the restaurants company changed hands via block deals.

At 09:15 am; around 28.95 million equity shares representing 2.4 per cent of the total equity of DIL changed hands on the BSE, the exchange data shows. The names of the buyers and sellers were not ascertained immediately.

As on June 30, 2022, the promoters held 62.80 per cent stake in DIL. Among the public shareholders, Dunearn Investments (Mauritius) Pte Ltd held 98 million shares or 8.13 per cent holding in the company, the shareholding pattern data shows.

At 09:20 am; the stock traded 4 per cent lower at Rs 187.40, as compared to 0.58 per cent decline in the S&P BSE Sensex. A combined 36.98 million equity shares had changed hands on the BSE and NSE.

With today’s fall, the stock has corrected 15 per cent from its record high of Rs 215 touched on August 18, 2022.  In the past one month, the stock has outperformed the market by gaining 12 per cent, against 4 per cent rise in the Sensex. In past one year, it rallied 57 per cent as compared to 6 per cent gain in the benchmark index.

DIL made its stock market debut in August last year. The company issued shares at the price of Rs 90 per share. DIL is the largest franchisee of Yum Brands in India and one of the top operators of chain quick-service restaurants (QSRs). It collaborates with Yum across various aspects of its operations for KFC and Pizza Hut for the franchisor’s brand protection and management including product innovation and development, brand strategy and technology initiatives. In addition, Devyani also has a franchisee for the Costa Coffee brand and stores in India.

Against the backdrop of a challenging macro-environment, DIL has delivered an encouraging performance across all parameters. The food services industry in India has a strong potential and there are significant growth opportunities across domestic markets. DIL is ideally positioned to capitalize on these growth prospects and its brands are well-equipped to cater to young Indian consumers and their dining habits.

DIL’s aim is to continue developing its store footprint across the Core Brands with a focus on unit-level performance to increase its Core Brands delivery business and invest in technology to enhance its digital competence, the company said in its FY22 annual report.