Devyani International is set to acquire approximately 11.4% additional equity stake in Sky Gate Hospitality for approximately INR 57.5 crore. Sky Gate will become a wholly-owned subsidiary upon completion of the deal. The consideration will be a mix of cash and issuance of Non-Convertible Redeemable Preference Shares. This will be from the Promoters/ Founders of Sky Gate.
Sky Gate Acquisition
Devyani International (DIL) has approved the acquisition of an additional equity stake in Sky Gate Hospitality Private Limited (‘Sky Gate’). The stake being acquired is approximately 11.4%.
Financial Details
The total consideration for the acquisition is approximately INR 57.5 crore. The payment will involve both cash and the issuance of Non-Convertible Redeemable Preference Shares.
Transaction Structure
The INR 57.5 crore consideration will be structured as follows:
Cash payment of approximately INR 27.5 crore to the promoters/founders of Sky Gate.
Issuance of up to 3,00,000 Non-convertible Redeemable Preference Shares, valued at INR 1,000 each, to the promoter/founder of Sky Gate. This totals approximately INR 30 crore.
Sky Gate Overview
Sky Gate Hospitality is involved in the food and beverage industry. As of December 31, 2025, Sky Gate’s paid-up share capital was approximately INR 23.36 lakh. Sky Gate’s consolidated turnover for the financial year ending March 31, 2025 was approximately INR 277 crore.
Timeline
The acquisition of the 11.4% additional equity stake in Sky Gate is expected to be completed by March 31, 2026.
Share Capital Reclassification
Devyani International has approved a reclassification of its authorized share capital, subject to shareholder approval. The reclassification involves dividing the authorized share capital of Rs. 5,67,50,00,000/- into 4,67,50,00,000 Equity Shares of Re. 1/- each and 10,00,000 Preference Shares of Rs. 1,000/- each.
Source: BSE
