Devyani International Moves to Merge Sapphire Foods and Consolidate Yum! Brand Operations

The latest update is out from Devyani International Ltd. ( (IN:DEVYANI) ).

Devyani International’s board has approved a Scheme of Arrangement to amalgamate Sapphire Foods India Limited into Devyani, with Sapphire shareholders receiving 177 fully paid equity shares of Devyani (face value Re 1) for every 100 shares of Sapphire (face value Rs 2), subject to multiple regulatory and shareholder approvals, including from the NCLT and competition authorities. The merger framework also hinges on the prior transfer of about 18.5% of Sapphire’s equity from Sapphire Foods Mauritius to group entity Arctic International, and sets detailed rights and obligations among Devyani, Sapphire and their promoters. In parallel, Devyani and Sapphire have signed a binding term sheet with Yum! group entities and other parties to acquire 19 KFC stores owned by Yum Restaurants (India) and to formalise the current and future business organisation between Yum India, Devyani and Sapphire, contingent on the merger’s approval, signalling a consolidation of Yum’s India franchise operations under a more unified structure. Additionally, the board has cleared a proposal to shift Devyani’s registered office from the National Capital Territory of Delhi to the state of Haryana and to amend its Memorandum of Association accordingly, with shareholder consent to be sought via postal ballot, reflecting an administrative realignment in step with the company’s broader corporate restructuring.

More about Devyani International Ltd.

Devyani International Limited is a quick-service restaurant operator based in India, part of the RJ Corp group, and a major franchisee for Yum! brands such as KFC, Pizza Hut and Taco Bell. Listed on Indian stock exchanges, the company focuses on expanding its presence in the domestic QSR market through both organic growth and strategic transactions within the food services ecosystem.

Average Trading Volume: 189,105

Technical Sentiment Signal: Sell

Current Market Cap: 175.6B INR

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