Devyani International To Raise Stake In Sky Gate Hospitality To 86.13%

Devyani International Ltd. on Monday said it will increase its stake in Sky Gate Hospitality Pvt. Ltd. to 86.13% from 80.72% for up to ₹1.06 billion in cash.

The additional stake will be acquired through a combination of subscribing to fresh equity shares and buying shares from Sky Gate’s promoters, the company said in a stock exchange filing. The transaction is expected to be completed by July 31.

Sky Gate Hospitality, which owns food brands such as Biryani By Kilo and The Bhojan, recently became a subsidiary of Devyani International. On April 24, Devyani’s board had approved the acquisition of an 80.72% stake in Sky Gate for ₹4.20 billion, largely through the issuance of 23.72 million new shares on a preferential basis to Sky Gate's selling shareholders.

The company completed this acquisition on June 10 by allotting the shares at ₹176.78 apiece, totalling around ₹4.19 billion. The remaining ₹3 million was paid in cash to cover withholding taxes.