Should you bid for loss-making Devyani International's Rs 1,800 crore IPO?

At the upper end of the price band, Devyani is offered at 9.5x market capitalisation/sales as per FY21 financial statement, compared to peers like Jubilant Foodworks (15x), Westlife Development (8.8x)

The largest franchisee of Yum Brands in India and one of the top operators of chain quick-service restaurants (QSRs) Devyani International is all set to hit the primary markets with its initial public offer (IPO) on Wednesday, August 4.

The company, which operates brands such as KFC, Pizza Hut and Costa Coffee, has priced its IPO in the range of Rs 86-90 per share and looks to raise Rs 1,838 crore at the upper end of the price band. The IPO is mainly an offer for sale, with a fresh issue worth only Rs 440 crore, which it plans to