Devyani International Acquires 11.4% Stake in Sky Gate for ₹57.5 Crore, Making it Wholly-Owned Subsidiary
Devyani International will acquire an additional 11.4% stake in Sky Gate Hospitality for ₹57.5 crore, making it a wholly-owned subsidiary. The consideration includes ₹27.5 crore in cash and ₹30 crore via Non-Convertible Redeemable Preference Shares. The acquisition is expected to be completed by March 31, 2026.
The acquisition is significant as it leads to full ownership of a subsidiary and involves a considerable financial transaction, impacting the company's structure and potentially its future earnings.
The acquisition of a controlling stake in Sky Gate Hospitality, leading to it becoming a wholly-owned subsidiary, is a positive development for Devyani International, indicating strategic growth and expansion.
Devyani International Limited announced today, February 4, 2026, that its Board of Directors has approved the acquisition of an additional 11.4% equity stake in Sky Gate Hospitality Private Limited ('Sky Gate') from its promoters/founders. The total consideration for this acquisition is approximately ₹57.5 crore, to be paid through a mix of cash and the issuance of Non-Convertible Redeemable Preference Shares (RPS).
Upon completion of this acquisition, Sky Gate will become a wholly-owned subsidiary of Devyani International. The company also approved the re-classification of its authorized share capital and consequential amendment in the Memorandum of Association (MOA), subject to shareholder and other necessary approvals. The authorized share capital will be re-classified from ₹5,67,50,00,000 divided into equity shares and preference shares, to a new structure also totaling ₹5,67,50,00,000 but with a different division between equity and preference shares.
As part of the consideration, Devyani International will issue and allot up to 3,00,000 fully paid-up Non-Convertible Redeemable Preference Shares, with a face value of ₹1,000 each, aggregating to approximately ₹30 crore. This issuance will be on a private placement basis to the promoter/founder of Sky Gate.
The company will also be seeking approval from its equity shareholders through a Postal Ballot for these proposals. The acquisition of the additional stake in Sky Gate is expected to be completed by March 31, 2026. Sky Gate operates in the Food and Beverages industry, with a consolidated turnover of approximately ₹277 crore for the financial year ended March 31, 2025.
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Devyani International Limited filed this with the NSE as a statutory disclosure, categorised under acquisition. It is a primary document, not a recommendation, and the desk marks it medium impact: worth reading, rarely worth acting on by itself.
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See the model portfoliosA plain-language summary of a public exchange filing by Devyani International Limited. Read the original for the full detail.