Sikkim News Update
Buisness

Amid rumors of a block deal, Devyani International rose 6%; Yum Restaurants is expected to be the seller

<p>The largest domestic franchisee of Yum Brands (KFC & Pizza Hut) and the only franchisee of Costa Coffee, Devyani International Ltd., saw a 6% increase in its shares on February 21 when 5.3 crore shares, or 4.4 percent of the operator of quick service restaurants, changed hands in a block deal.</p>
<p><img decoding=”async” class=”alignnone wp-image-428440″ src=”https://www.theindiaprint.com/wp-content/uploads/2024/02/theindiaprint.com-amid-rumors-of-a-block-deal-devyani-international-rose-6-yum-restaurants-is-expect.jpg” alt=”theindiaprint.com amid rumors of a block deal devyani international rose 6 yum restaurants is” width=”1005″ height=”670″ title=”Amid rumors of a block deal, Devyani International rose 6%; Yum Restaurants is expected to be the seller 9″ srcset=”https://www.theindiaprint.com/wp-content/uploads/2024/02/theindiaprint.com-amid-rumors-of-a-block-deal-devyani-international-rose-6-yum-restaurants-is-expect.jpg 510w, https://www.theindiaprint.com/wp-content/uploads/2024/02/theindiaprint.com-amid-rumors-of-a-block-deal-devyani-international-rose-6-yum-restaurants-is-expect-150×100.jpg 150w” sizes=”(max-width: 1005px) 100vw, 1005px” /></p>
<p>The stake was sold for a floor price of Rs 164 per share, which represented a 1.2% decrease from the closing price.</p>
<p>The buyers and sellers were unknown to News18.com, but according to a CNBC-TV18 story, Yum Restaurant India Private Ltd is the most probable seller, having sold the whole 4.4 percent ownership in the KFC operator. The only lead manager responsible for book running is Citigroup Global Markets India.</p>
<p>The research was released at a period of low unit economics for dine-in and delivery formats in the QSR sector. In a recent report, Motilal Oswal Securities said that KFC has shown tenacity in efficiently handling the crisis despite these challenges facing the whole sector.</p>
<p>However, PH has been having difficulties, which may be partially ascribed to the fierce market rivalry. Notwithstanding short-term business obstacles, Devyani’s ambitions for store development remain optimistic. The goal of 2,000 shops by FY24 is still on track as a whole. Because of the persistent issues with demand in the short term, we continue to be cautious. The stock’s recent decline helps to somewhat mask the pressure in the near future, the statement stated. With a target price of Rs 195, we maintain our BUY rating on the stock,” the statement said.</p>
<p>With a reported valuation of Rs 814.80 crore, Citigroup Global Markets India is thought to be the only book running lead manager (BRLM) for the Yum stake sale.</p>
<p>According to a recent study by Elara Securities, Devyani International was reportedly constantly striving to improve its delivery performance and establish stronger connections between its delivery services and retailers. The intention was to increase the number of Pizza Hut and KFC locations that specialize in delivery services. This included working closely with delivery aggregators to take advantage of the rapidly expanding internet delivery market.</p>
<p>“Pizza Hut India has maintained its flagship and dine-in locations while shifting its emphasis to a delivery-centric business strategy. Delivery times have greatly improved as a consequence of the fast growth of delivery-focused retailers, which has improved the entire customer experience. The shift from expansive dining-focused storefronts to more compact, delivery-focused models has aided in a quicker pace of national development in addition to improving performance at the unit level, the statement said.</p>

Related posts

TRAI is considering immediately establishing a statutory authority for the development of responsible AI and the regulation of use cases

These Users Can Now Make “Direct Calls” Using Google Meet Without Sending Links

Select Store Employees Will Receive Vision Pro Headset Training From Apple: Every Detail