Shares of Devyani International Ltd. (DIL) surged by 7.03% on Friday. The rise came after the announcement of the company’s merger with Sapphire Foods, the franchise operator of Yum! Brands’ restaurants, KFC and Pizza Hut while Sapphire Foods share price dropped by 3%.
The boards of Devyani International Ltd (DIL) and Sapphire Foods India Ltd (SFIL) at their respective meetings held on Thursday approved a scheme of arrangement for the merger of SFIL with and into DIL, marking a strategic consolidation of the two companies.
The proposed merger is subject to receipt of all customary regulatory and statutory approvals, including nods from the stock exchanges, the Competition Commission of India, the National Company Law Tribunal(s), and the shareholders and creditors of both companies.
According to the scheme of arrangements, “177 equity shares of DIL will be issued for every 100 equity shares of SFIL”.
Moreover, DIL will acquire 19 KFC restaurants, which are currently operated by its local unit Yum! India in Hyderabad opened when the company was entering and expanding its base in India.
Yum! Brands operates in India with three QSR brands — KFC, Pizza Hut, and Taco Bell. Besides, it also owns Habit Burger and Grill, among others.
The proposed merger is expected to have synergy benefits, such as the formation of one of the largest QSR platforms in India, with enhanced scale and national footprint, excluding captive markets. It is also expected to unlock growth with a unified brand strategy for both KFC and Pizza Hut.
Last year, DIL acquired Sky Gate Hospitality, which owns brands such as Biryani By Kilo and Goila Butter Chicken. DIL is the largest franchisee for Yum Brands’ QSR chains – KFC and Pizza Hut in India. In addition, DIL is the sole franchisee for Costa Coffee, Tea Live, New York Fries and Sanook Kitchen in India. It also owns the South Indian vegetarian food QSR chain Vaango. It operates stores across more than 280 cities in India, Nigeria, Nepal and Thailand, as of September 30, 2025.
Devyani Share Price Today
Devyani Share Price Today
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