Why did KFC, Pizza Hut operator Devyani International shares rise 3% today?

Devyani International Sky Gate Hospitality Acquisition: Devyani International share price gained 3 per cent on signing agreement to acquire additional stake in Sky Gate; check all details

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Devyani International, operator of famous fast food chains KFC and Pizza Hut, shares gained 3.3 per cent in trade on Tuesday, logging an intraday high at ₹172.4 per share on BSE. The buying on the counter came after the company inked a share subscription agreement and shareholders agreement with Sky Gate Hospitality for acquisition of 80.72 per cent stake.

 

At 10:21 AM, Devyani International share price was trading 1.38 per cent higher at ₹169.05 per share on the BSE. In comparison, the BSE Sensex was up 1.09 per cent at 82,785.49. The company's market capitalisation stood at ₹20,424.94 crore. Its 52-week high was at ₹222.75 per share and 52-week low was at ₹130.05 per share.  READ STOCK MARKET UPDATES TODAY LIVE 

Devyani International has previously informed that it had acquired 80.72 per cent stake in Sky Gate Hospitality along with its subsidiaries. To discharge the consideration for the acquisition, Devyani International had proposed the issuance and allotment of 2,37,18,413 shares of face value of ₹1 each, on a preferential basis. 

 

According to the filing, post the said acquisition, Sky Gate along with its subsidiaries-- Blackvelvet Hospitality, Say Chefs Eatery, and Peanutbutter and Jelly became subsidiaries of Devyani International. 

 

On Monday, June 23, 2025, the company executed the share subscription, purchase and shareholders agreement with Sky Gate and its promoters/ founders to acquire additional equity stake in Sky Gate, in one or more tranches.

 

The cost of acquisition is up to ₹106.25 crore, according to the filing.

 

Currently, the company holds 80.72 per cent equity in Sky Gate. Subsequent to the proposed investment, the company’s equity stake would increase to 86.13 per cent, on a fully diluted basis, in Sky Gate. 

About Devyani International

Established in 1991, Devyani International Limited (DIL) is one of India’s largest and fastest growing Chain Quick Service Restaurant (QSR) operators in the country.

 

As on December 31, 2024, the company operates more than 2,030 stores across brands in over 280 cities in India, Thailand, Nigeria and Nepal. DIL is India’s largest franchisee for Yum Brands, operating KFC and Pizza Hut outlets, and the exclusive franchisee for Costa Coffee cafes in the country.