Sapphire Foods India Limited has informed the Exchange about Agreements
SAPPHIRE · price
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Sapphire Foods India's board has approved a scheme of arrangement to merge with Devyani International Limited, with an appointed date of April 1, 2026. Under the swap ratio, shareholders of Sapphire Foods will receive 177 equity shares of Devyani International for every 100 shares held, valuing Sapphire at a premium to its current price. As a precondition, promoter entity SFML will sell its 5.94 crore shares (18.5% stake) in Sapphire to Arctic International, a Devyani group company, which may be further assigned to a financial investor. Both companies operate KFC and Pizza Hut restaurants in India, and a binding term sheet has been signed with Yum India to amend franchise development agreements and update commercial terms. The board also approved shifting the registered office from Maharashtra to Haryana, subject to shareholder and regulatory approvals. The merger requires NCLT, Competition Commission of India (CCI), stock exchange, and shareholder/creditor approvals before becoming effective.
Shareholders of Sapphire Foods will end up holding shares of Devyani International at a fixed swap ratio, so the stock price should move closer to the implied merger value. The combined entity will consolidate KFC and Pizza Hut operations in India (excluding airport and railway locations), creating a larger QSR player with better scale, bargaining power, and capital market access — generally positive for long-term value but subject to regulatory and approval risks.