Devyani International Acquires Full Stake in Sky Gate for INR 57.5 Crore
Filing Summary
Devyani International Ltd has approved the acquisition of an additional 11.4% equity stake in Sky Gate Hospitality Private Limited for approximately INR 57.5 crore. This transaction will make Sky Gate a wholly-owned subsidiary of Devyani International. The acquisition involves a mix of cash payment and the issuance of Non-Convertible Redeemable Preference Shares. The company also plans to reclassify its authorized share capital and issue up to 3,00,000 preference shares to facilitate this acquisition. Completion is expected by March 31, 2026, subject to necessary approvals.
Devyani International Ltd has announced the acquisition of an additional 11.4% equity stake in Sky Gate Hospitality Private Limited, making it a wholly-owned subsidiary. The acquisition was approved by the Board of Directors on February 4, 2026. The transaction involves a total consideration of approximately INR 57.5 crore, which will be settled through a combination of cash and the issuance of Non-Convertible Redeemable Preference Shares.
The financial terms of the acquisition include a cash payment of approximately INR 27.5 crore to the promoters and founders of Sky Gate. Additionally, Devyani International will issue and allot up to 3,00,000 fully paid-up Non-Convertible Redeemable Preference Shares, each with a face value of INR 1,000, aggregating to INR 30 crore. These shares will be issued on a private placement basis to discharge the purchase consideration for the additional equity stake.
Operationally, the acquisition will result in Sky Gate becoming a wholly-owned subsidiary of Devyani International. The company will reclassify its authorized share capital, which currently stands at INR 5,67,50,00,000. The reclassification will adjust the equity shares to 4,67,50,00,000 and preference shares to 10,00,000, each with a face value of INR 1,000. This change is subject to shareholder and regulatory approvals.
The acquisition is expected to be completed by March 31, 2026. The timeline includes obtaining necessary approvals from shareholders and relevant authorities. The issuance of preference shares will be finalized upon receipt of shareholder approval, with a maturity period of up to ten years from the date of allotment.
Entities involved in this transaction include Devyani International Ltd and the promoters/founders of Sky Gate Hospitality Private Limited. The acquisition is classified as a related party transaction, conducted at arm’s length. There is no interest from the promoter group of Devyani International in Sky Gate.
Sky Gate Hospitality operates in the Food and Beverages industry. Its consolidated turnover for the financial year ending March 31, 2025, was approximately INR 277 crore. The acquisition aligns with Devyani International’s strategic objectives to expand its footprint in the food and beverage sector.
Devyani International Ltd is a leading player in the food and beverage industry, focusing on expanding its portfolio through strategic acquisitions and partnerships. The company aims to enhance its market presence and operational capabilities by integrating subsidiaries like Sky Gate into its business framework.