Devyani International to acquire 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. Sky Gate's FY25 turnover was ₹277 crore.
The acquisition is significant as it leads to full ownership of a subsidiary, but the financial impact is moderate relative to the company's overall size.
The acquisition of an additional stake to make a subsidiary wholly-owned is a positive strategic move for the company.
Devyani International Limited announced on 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 a consequential amendment to the 'Capital Clause' of its Memorandum of Association, subject to shareholder and other necessary approvals.
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 acquisition of the ~11.4% additional equity stake in Sky Gate is expected to be completed by March 31, 2026. Sky Gate's consolidated turnover for the financial year ended March 31, 2025, was approximately ₹277 crore (excluding turnover from Krazy Kebab Co. and Peanutbutter). The acquisition is considered an arm's length transaction.
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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.