Devyani International Share Price Surges on Raising Stake in Sky Gate Hospitality

Devyani International Limited (DIL), a prominent player in the food and beverage sector, is set to deepen its investment in Sky Gate Hospitality Private Limited. In a move aligned with its expansion strategy, the company has signed multiple agreements to acquire an additional equity stake in Sky Gate, taking its total holding to approximately 86.13% on a fully diluted basis.

Expansion through Strategic Agreements

DIL previously acquired 80.72% equity in Sky Gate, which owns popular brands like ‘Biryani By Kilo’, ‘Goila Butter Chicken’, and ‘The Bhojan’. On 23rd June 2025, the company announced that it has executed a Share Subscription Agreement and Shareholders Agreement with Sky Gate and its promoters, along with a Share Purchase Agreement to acquire more shares in one or more tranches. The proposed acquisition will be completed by 31st July 2025.

Financial Structure and Purpose of the Deal

The acquisition will be carried out through a cash consideration of up to ₹106.25 crore, which includes subscription to fresh equity shares and share purchase from promoters. The deal is a related party transaction since Sky Gate is already a subsidiary, though it is stated to be conducted at arm’s length. The additional funds will be used to support Sky Gate’s subsidiaries, operational needs, and other general corporate purposes.

Read More: Devyani International FY25 Earnings Results: Revenue Soars 39%, Adds 257 New Stores!

Devyani International Share Price Performance 

As of 24 June 2025, 10:30 AM, Devyani International shares are trading at ₹168.80. per share, a surge of 1.30%. Over the month, the stock has declined by 3.84%.

Conclusion

With this incremental stake acquisition, Devyani International Limited has reaffirmed its focus on strengthening its presence in the growing Indian food and beverage industry. The transaction is expected to bring long-term operational and strategic benefits for both companies.

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