Devyani International to acquire 11.4% stake in Sky Gate Hospitality for ₹57.5 crore
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 cash and ₹30 crore via Non-Convertible Redeemable Preference Shares. The acquisition is expected to be completed by March 31, 2026.
The acquisition, while significant for strategic consolidation, involves a moderate financial outlay and is unlikely to drastically alter the company's overall financial performance in the short term. However, it strengthens its subsidiary control.
The acquisition of a further stake in Sky Gate Hospitality, leading to it becoming a wholly-owned subsidiary, is a positive strategic move for Devyani International, indicating expansion and consolidation.
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 for a total consideration of approximately ₹57.5 crore. This acquisition will be achieved through a mix of cash and the issuance of Non-Convertible Redeemable Preference Shares. Upon completion, 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 Clause V of its Memorandum of Association (MOA), subject to shareholder and regulatory approvals. The authorized share capital, currently ₹5,675 crore, will be re-classified. The specific details of the re-classification involve changes in the number of equity shares and preference shares.
As part of the acquisition consideration, 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 ₹1,000, aggregating to approximately ₹30 crore. This issuance will be on a private placement basis to the promoter/founder of Sky Gate.
Sky Gate Hospitality Private Limited operates in the Food and Beverages industry. As of December 31, 2025, its paid-up share capital was approximately ₹23.36 lakh. For the financial year ended March 31, 2025, its consolidated turnover (excluding certain entities) was approximately ₹277 crore. The acquisition is expected to be completed by March 31, 2026. The company also announced that a Notice of Postal Ballot will be submitted to the stock exchanges for seeking shareholder approval.
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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.