Devyani International Limited (NSE: DEVYANI) announced on April 24, 2025, that it will acquire up to 80.72% stake in Sky Gate Hospitality Private Limited — the parent company of food brands like ‘Biryani By Kilo’, ‘Goila Butter Chicken’, and ‘The Bhojan’ — for approximately Rs 419.6 crore.
To fund the deal, the company will issue 2.37 crore fully paid-up equity shares at Rs 176.78 per share on a preferential basis, aggregating to Rs 419.31 crore. The issuance will be part of a share swap arrangement with 79 investors, and the remaining consideration will be paid in cash, subject to contingent conditions.
Sky Gate operates over 100 outlets across 40 cities and reported unaudited revenue of Rs 277 crore in FY25 (excluding contributions from brands to be divested). Post-transaction, it will become a subsidiary of Devyani International. The acquisition enhances Devyani’s footprint in the growing specialty Indian food segment.
The company has called for an Extraordinary General Meeting on May 17, 2025, to seek shareholder approval for the preferential allotment.
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