On April 24, 2025, Devyani International Limited (DIL), a leading player in India's Quick Service Restaurant (QSR) sector, announced its decision to acquire up to 80.72% equity stake in Sky Gate Hospitality Private Limited. Sky Gate, along with its subsidiaries, owns popular Indian cuisine brands such as Biryani By Kilo, Goila Butter Chicken, and The Bhojan.

Deal Structure and Financials

The acquisition deal is valued at approximately ₹419 crore. To finance this, DIL plans to issue and allot up to 2.37 crore fully paid-up equity shares at an issue price of ₹176.78 per share on a preferential basis to the sellers. This move is subject to shareholder approval and other regulatory compliances. ​

Expansion of Brand Portfolio

With this acquisition, DIL aims to strengthen its presence in the Indian cuisine segment. Sky Gate operates over 100 outlets across more than 40 cities, offering freshly prepared biryani and other Indian delicacies. The inclusion of these brands complements DIL's existing portfolio, which includes international brands like KFC, Pizza Hut, and Costa Coffee. ​

Shareholder Approval and EGM

To formalize the acquisition, DIL has scheduled an Extraordinary General Meeting (EGM) on May 17, 2025. The EGM will be conducted through Video Conferencing/Other Audio Visual Means, seeking shareholder approval for the preferential issue of equity shares. ​

Market Response and Future Outlook

Following the announcement, DIL's stock witnessed a positive response, indicating investor confidence in the strategic move. Analysts believe that this acquisition will enable DIL to tap into the growing demand for Indian cuisine and expand its market share in the QSR segment. ​

Conclusion

Devyani International's acquisition of a majority stake in Sky Gate Hospitality marks a significant step in its growth strategy. By integrating popular Indian cuisine brands into its portfolio, DIL is poised to cater to a broader customer base and strengthen its position in the competitive QSR market.​

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