Updates on Acquisition
Awaiting price reaction for this filing.
Devyani International is increasing its stake in Sky Gate Hospitality Private Limited from around 80.72% to about 86.13% on a fully diluted basis. The deal will cost up to Rs. 106.25 crore in cash, to be paid in one or more tranches, and is expected to be completed by July 31, 2025. Sky Gate owns brands like 'Biryani By Kilo', 'Goila Butter Chicken', 'The Bhojan' and 'Get-A-Way', and reported consolidated turnover of around Rs. 277 crore in FY25. The transaction is classified as a related party deal since Sky Gate is already a subsidiary, and promoters of Devyani have no stake in Sky Gate. The company has signed Share Subscription, Shareholders and Share Purchase agreements to formalise the additional investment.
This strengthens Devyani's control over a fast-growing food brands portfolio that complements its existing business, though the related-party tag may draw shareholder scrutiny. Shareholders should expect modest equity dilution benefits to flow fully to Devyani given the increased ownership.