Devyani International to Raise Stake in Sky Gate Hospitality to 86.13% via ₹106 Crore Investment

25 Jun 2025 , 11:55 AM

Devyani International has decided to increase its stake in Sky Gate Hospitality from 80.72% to around 86.13%. The move involves an investment of up to ₹106.25 crore, which will be made in cash and spread across one or more tranches.

Agreements for the deal have already been signed, including a share subscription agreement and shareholders agreement with Sky Gate and its founders. Additionally, a share purchase agreement was executed to acquire more equity directly from Sky Gate’s promoters. The transaction is expected to be completed on or before July 31, 2025, depending on the timelines of each phase.

Sky Gate, already operating as a subsidiary of Devyani International, runs a group of well-known food brands such as Biryani By Kilo, Goila Butter Chicken, The Bhojan, Get-A-Way, and Krazy Kebab Co.

As of March 31, 2025, Sky Gate reported an unaudited consolidated turnover of approximately ₹277 crore for the year, not including two of its units. Its paid-up capital stood at ₹20.23 lakh at the end of the fiscal. The funds from this round of investment will be used to expand Sky Gate’s operations, support investments in its subsidiaries, and cover general corporate needs.

While the transaction qualifies as a related party deal, Devyani clarified that its promoter group does not hold any direct stake in Sky Gate. The company also confirmed that the entire process is being conducted on an arm’s length basis.

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