Devyani International to Acquire 81% Stake in Biryani By Kilo Parent for ₹419 Crore

25 Apr 2025 , 04:27 PM

Devyani International Ltd. announced on April 24 that it will acquire up to 80.72% equity stake in Sky Gate Hospitality Private Limited, including its subsidiaries. The proposed transaction is valued at ₹419.31 crore, representing the total equity consideration for the 80.72% stake.

Sky Gate Hospitality owns a portfolio of well-known food brands including Biryani By Kilo, Goila Butter Chicken, The Bhojan, Get-A-Way, and Krazy Kebab Co. Following the completion of the deal, Sky Gate Hospitality will become a subsidiary of Devyani International, expanding the company’s presence in the Indian food services sector.

As part of the transaction structure, Devyani International will acquire only three brands, while Krazy Kebab Co. and Get-A-Way (owned via Peanutbutter) will be disinvested within the next nine months.

The implied equity value of Sky Gate, excluding the Krazy Kebab and Get-A-Way businesses, is estimated at ₹519 crore. Devyani International will issue 2.37 crore shares at a price of ₹176.78 per share through a preferential allotment to fund the acquisition.

The proposed preferential issue is subject to shareholder approval, which will be sought during the company’s Extraordinary General Meeting scheduled on May 17, 2025. The acquisition is expected to close within 15 days from the date of shareholder and regulatory approvals.

Sky Gate operates a network of over 100 outlets, including dine-in restaurants, across more than 40 Indian cities. The company is among the early movers in India’s food delivery market to introduce the handi biryani concept with freshly prepared biryani delivered to customers.

For the financial year ended March 31, 2025, Sky Gate reported a consolidated turnover of ₹277 crore, excluding revenue from Krazy Kebab and Get-A-Way. Devyani International aims to leverage this acquisition to broaden its food retail portfolio and enhance its reach in both dine-in and delivery formats.