Devyani International has initiated a scheme of amalgamation to merge three of its subsidiary companies into the parent organisation. The companies involved in the merger are Sky Gate Hospitality, Blackvelvet Hospitality, and Say Chefs Eatery. The company reported a standalone net worth of Rs 10,381.02 million and a standalone turnover of Rs 33,493.33 million for the financial year ending 31 March 2025.
Sky Gate Hospitality recorded a standalone net worth of Rs 761.14 million and a turnover of Rs 2,657.57 million as of March 31, 2025. Blackvelvet Hospitality reported a negative net worth of Rs 59.46 million and a turnover of Rs 315.87 million. Say Chefs Eatery posted a negative net worth of Rs 0.83 million and a turnover of Rs 1.72 million during the same financial period.
Devyani International operates as the largest non exclusive franchisee of Yum! Brands in India and is among the region’s largest quick service restaurant chain operators. As of December 31, 2025, the company manages more than 2,000 stores across over 280 cities in India, Nigeria, Nepal, and Thailand.
The company is also the sole Indian franchisee for Costa Coffee, Tealive, New York Fries, and Sanook Kitchen. In addition, it directly owns brands such as Biryani By Kilo, Goila Butter Chicken, and Vaango.
The three transferor companies collectively operate more than 100 dine-in and cloud kitchen outlets across over 40 cities, including Delhi NCR, Mumbai, Kolkata, and Bengaluru. Sky Gate Hospitality is specifically known for introducing the Handi Biryani concept, which focuses on delivering freshly prepared biryani.
Because the transferor companies are wholly owned subsidiaries of Devyani International, they are classified as related parties. However, the amalgamation is exempt from the related party transaction provisions under Section 188 of the Companies Act 2013. The exemption is based on General Circular Number 30/2014 issued by the Ministry of Corporate Affairs on July 17, 2014.
Additionally, under Regulation 23(5)(b) of the SEBI Listing Regulations, standard related party transaction rules do not apply to schemes of arrangement between a holding company and its wholly owned subsidiaries.
The Board of Directors of the respective entities stated that the merger will create stronger business synergies, optimize the use of assets and resources, reduce operational costs and corporate layers, and improve overall efficiency to generate greater value for stakeholders.
The company also added that because the transferor companies are wholly owned subsidiaries of Devyani International, no new shares will be issued once the scheme is sanctioned. As a result, no share entitlement ratio or valuation report will be required, and the shareholding pattern of the listed entity will remain unchanged.
