Devyani International Limited has informed the Exchange about Update on Acquisition.
DEVYANI · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
Devyani International has approved an additional investment of about THB 1,210 million (~INR 3,473 million) into Restaurants Development Co. Ltd. (RD), its Thailand-based subsidiary that operates 274 KFC restaurants, through its Dubai arm DID and Yellow Palm Co. The money will be used partly to repay about THB 810 million of internal DID debt and the rest for RD's working capital and capex needs, leaving a net out-of-pocket investment of around THB 400 million (~INR 1,148 million) for the group. To fund this, Devyani will give a convertible loan of ~THB 400 million to DID, while DID will also take a short-term loan of ~THB 810 million from Axis Bank Dubai, which will be backed by a corporate guarantee from Devyani. The move is aimed at strengthening RD's balance sheet and supporting its long-term growth, with the transaction expected to be completed by June 30, 2026. RD reported turnover of about THB 6.13 billion in FY2025, up from THB 5.67 billion in CY2023.
Positive for shareholders in the medium term as it removes inter-company debt and supports the growth of the Thailand KFC business, but it adds a corporate guarantee of ~INR 2,325 million as contingent liability and ~INR 1,148 million of cash outflow for the company.