Synopsis: Shares of Devyani International rose after the company approved the amalgamation of its subsidiaries Sky Gate Hospitality, Blackvelvet Hospitality and Say Chefs Eatery into the parent entity. The merger aims to improve operational efficiency, streamline corporate structure and enhance resource utilisation while creating value for shareholders.
Shares of Devyani International witnessed a modest rise during Wednesday’s trading session after the company announced a strategic corporate development. The company has approved a scheme of amalgamation involving three of its subsidiaries, aimed at consolidating operations and simplifying its corporate structure. Such restructuring moves are often undertaken to improve efficiency, optimise resource utilisation and enhance long-term business synergies within the organisation.
With a market cap of Rs 13,800 crore, the shares of Devyani International Ltd Jumped about 2.2% in today’s trading session and reached a high of Rs 113.05. When compared to its previous day’s closing price of Rs 110.60.
About the Merger
Devyani International shares are in focus as the company’s board has approved the scheme of amalgamation of three of its subsidiaries, namely, Sky Gate Hospitality Private Limited, Blackvelvet Hospitality Private Limited, and Say Chefs Eatery Private Limited, into the company. This has been done during the board meeting held on March 10, 2026, in adherence to the regulatory requirements under SEBI listing regulations.
The amalgamation scheme has been designed such that these three companies are amalgamated with Devyani International, and the appointed date for this amalgamation has been fixed at the opening hours of April 1, 2025. These companies are either direct or indirect wholly owned subsidiaries of Devyani International, and hence, the company does not require obtaining a “no objection letter” from the stock exchange for this amalgamation scheme.
Strategic consolidation to improve operational efficiency
The merger is intended to streamline the corporate structure and improve operational efficiency. For instance, it is disclosed that the merger is expected to create better business synergies, facilitate optimum utilisation of assets and resources, and improve operational costs and corporate layers. Such strategic consolidations would improve operational efficiency and create value to improve shareholder value.
The subsidiaries to be merged operate over 100 outlets across over 40 cities across India, including Delhi NCR, Mumbai, Kolkata, and Bengaluru. Some of these outlets operate as cloud kitchens. Sky Gate is known to have introduced the ‘Handi Biryani’ concept to its consumers and has been delivering freshly prepared biryani to consumers.
However, it is disclosed that there would be no change to the shareholding pattern of the company as a result of the merger. Furthermore, no fresh shares would be issued as part of the scheme of arrangement, as it is a merger of wholly owned subsidiaries. The merger is subject to obtaining requisite approvals from shareholders, creditors, and the National Company Law Tribunal.
Financials
The revenue from operations for the company stood at Rs 1,441 crore in Q3 FY26 compared to the Q3 FY25 revenue of Rs 1,294 crore, up by about 11 per cent YoY. However, the net loss stood at Rs 11 crore in Q3 FY26, up compared to the Rs 8 crore profit in Q3 FY25.
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