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Devyani Industries Buys 80% Stake In Skygate Hospitality, To Also Take Over Units

Devyani International acquired 19% stake and 29% stake in Blackvelvet Hospitality and Say Chefs Eatery, respectively.

<div class="paragraphs"><p>Say Chefs owns the brand ‘Goila Butter Chicken’. (Photo source: Goila Butter Chicken Website)</p></div>
Say Chefs owns the brand ‘Goila Butter Chicken’. (Photo source: Goila Butter Chicken Website)

Devyani International Ltd. has bought 80.72% equity stake in Sky Gate Hospitality Pvt. on a fully diluted basis. With this acquisition the operator of KFC and Pizza Hut will also take over Sky Gate's subsidiaries—Blackvelvet Hospitality Pvt., Say Chefs Eatery Pvt. and Peanutbutter and Jelly Pvt.

The firm acquired 19% stake and 29% stake in Blackvelvet Hospitality and Say Chefs Eatery, respectively, according to an exchange filing.

Devyani International mopped up 2,82,504 equity shares of Blackvelvet Hospitality for Rs 6.21 crore in one or more tranches.

Blackvelvet is in the business of home delivery and dine-in restaurants serving Mughlai and Indian cuisine, biryani, kebabs, kormas and Indian desserts etc. It has operations in Mumbai, the filing said.

The Pizza Hut operator purchased 2,900 equity shares of Say Chefs for Rs 12.7 crore.

Say Chefs owns the brand 'Goila Butter Chicken’ and is in the business of setting up and operating restaurants and cloud kitchens to provide an overall curated culinary experience, the filing stated.

The acquisition is expected to be completed on or before July 31, 2025 for both firms.

Details regarding the acquisition of Peanutbutter and Jelly could not be ascertained.

Sky Gate currently holds 81% stake in Blackvelvet and 71% stake in Say Chefs. Devyani International will have 100% stake in both companies post the acquisition.

Shares of Devyani International closed 0.20% lower at Rs 171.52 apiece on the NSE on Friday, compared to a 0.35% rise in the benchmark Nifty 50. The stock has risen 4.13% in the last 12 months and fallen 5.99% on a year-to-date basis.

Out of 26 analysts tracking the company, 18 have a 'buy' rating on the stock, three recommend 'hold' and five suggest 'sell', according to Bloomberg data. The average of 12-month analysts' price target implies a potential upside of 8.9%.

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