Devyani International Approves ~₹3,473 Mn Investment in Thai Subsidiary
Devyani International will invest approximately ₹3,473 Mn in its Thai subsidiary, RD, through its subsidiary DID and Yellow Palm. RD will use THB 810 Mn (~₹2,325 Mn) to retire debt and the rest for working capital and capex. DID will raise ₹1,148 Mn via convertible loan and ₹2,325 Mn from Axis Bank, secured by Devyani's guarantee. The deal is expected to close by June 30, 2026.
The investment is significant in absolute terms and aims to support the growth of a key international subsidiary, but it is not a transformative event for the entire company. The impact is primarily on the subsidiary and its contribution to the consolidated results.
The investment is aimed at strengthening the subsidiary's balance sheet, retiring debt, and funding future growth, which are positive indicators for the company's expansion and financial health.
Devyani International Limited (DEVYANI) has principally approved an investment of approximately THB 1,210 Mn (approximately INR 3,473 Mn) in its Thai subsidiary, Restaurants Development Co., Ltd. (RD), through its Dubai-based subsidiary, Devyani International DMCC (DID), and Yellow Palm Co., Ltd. (Yellow).
This investment, approved by the Investment and Borrowing Committee on March 10, 2026, based on the Audit, Risk Management & Ethics Committee's recommendation, aims to strengthen RD's balance sheet and fund its long-term business requirements. A portion of the investment, THB 810 Mn (approximately INR 2,325 Mn), will be used by RD to retire existing debt owed to DID, with the remainder allocated to working capital and capital expenditure needs. The net investment by the Group amounts to approximately THB 400 Mn (approximately INR 1,148 Mn).
To facilitate this, DID will raise approximately THB 400 Mn (approximately INR 1,148 Mn) through a convertible loan from Devyani International and a short-term loan of approximately THB 810 Mn (approximately INR 2,325 Mn) from Axis Bank Limited, Dubai. This short-term loan will be secured by a corporate guarantee from Devyani International.
The acquisition of controlling interest in RD, which operates 274 KFC restaurants in Thailand as of September 2023, was initially informed on December 18, 2023, and January 17, 2024. The detailed disclosures for these investments and the corporate guarantee are attached as Annexure I and Annexure II, respectively. The acquisition is expected to be completed by June 30, 2026.
RD reported a turnover of THB 6.13 Bn for FY 2025. The investment by Devyani International in DID is considered a related party transaction, with the proposed investment at arm's length. Similarly, investments by DID and Yellow in RD are also related party transactions, conducted at arm's length.
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