Devyani states that the acquisition will be executed through a combination of fresh equity subscription and share purchase agreements with Sky Gate’s promoters
As the company looks to deepen its control over the fast-growing cloud kitchen brands, Devyani International on Monday moved further in tightening its control over Sky Gate Hospitality by acquiring additional equity from the company’s promoters and founders in a deal worth up to Rs 106.25 crore. This move will raise Devyani’s stake in Sky Gate from 80.72 per cent to approximately 86.13 per cent on a fully diluted basis.
In its intimation to stock exchanges, Devyani stated that the acquisition will be executed through a combination of fresh equity subscription and share purchase agreements with Sky Gate’s promoters, which will be completed in one or more tranches by 31 July 2025.
This transaction comes just weeks after Devyani completed the acquisition of a majority 80.72 per cent stake, worth Rs 419 crore, in Sky Gate on 10 June 2025, following a preferential allotment of over 2.37 crore equity shares. The acquisition was announced in April 2025.
Sky Gate, incorporated in 2015, is the parent of fast-growing food and beverage (F&B) delivery brands such as Biryani By Kilo, Goila Butter Chicken, The Bhojan, Get-A-Way, and Krazy Kebab Co. The company reported an unaudited consolidated turnover of Rs 277 crore in FY2024-25, excluding contributions from two of its subsidiaries.
The current buyout of the promoters’ stake is aimed at increasing control and enabling further investments in Sky Gate’s operations and subsidiaries for long-term strategic growth, according to a company statement.
While the latest acquisition qualifies as a related party transaction under Sebi rules, Devyani clarified that the transaction is being undertaken at arm’s length and that its promoter group does not hold any direct interest in Sky Gate.
Devyani International operates and manages leading quick-service restaurant (QSR) chains, including KFC, Pizza Hut, and Costa Coffee, in India.
