Devyani International Ltd.'s arm on Friday approved an investment of about Rs 347 crore in Thailand-based Restaurants Development Co. Ltd (RD), a KFC franchise operator, as the company looks to strengthen its balance sheet and support long-term growth in the overseas market.
The investment will be routed through its subsidiary Devyani International DMCC (DID) along with group entity Yellow Palm Co. Ltd.
Out of the total investment, around Rs 232.5 crore will be utilised to repay existing debt that Restaurants Development owes to DID. The remaining funds will be deployed towards working capital requirements and capital expenditure. The net investment by the group stands at approximately Rs 114.8 crore.
To finance the transaction, DID will raise a convertible loan of about Rs 114.8 crore from the parent company and secure a short-term loan of around Rs 232.5 crore from Axis Bank Limited's Dubai branch. The bank loan will be backed by a corporate guarantee from Devyani International and is expected to be repaid once Restaurants Development settles its existing dues to DID.
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The transaction is expected to be completed by June 30, 2026.
Following the investment, DID will hold a 49% stake in Restaurants Development, while Yellow Palm Co. Ltd. will own the remaining 51%. RD will continue to function as a subsidiary of both entities and, in turn, remain under the parent company.
The development builds on earlier disclosures by the company regarding its plans to acquire a controlling stake in Restaurants Development and its holding companies in Thailand, including White Snow Company Limited, Blackbriar Co. Ltd., and Yellow Palm Co. Ltd. Restaurants Development currently operates a network of 274 KFC restaurants in the country.
Shares of Devyani International closed at Rs 104.40 on the NSE on Friday, down Rs 1.17 or 1.11%.
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