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Devyani International stock rockets 8% as mega QSR merger shakes Dalal Street; Sapphire Foods slides
Mumbai/IBNS: Shares of Devyani International surged 8% on Friday after the company announced its merger with Sapphire Foods India, even as Sapphire Foods’ stock fell nearly 6% in early trade, media reports said.
Devyani International climbed to an intraday high of Rs 157.37 around 9:20 am, while Sapphire Foods slipped to an intraday low of Rs 252.90 per share, according to Livemint.
Under the strategic deal, Sapphire Foods India — which operates KFC and Pizza Hut outlets — will be merged into Devyani International Limited (DIL), one of India’s largest quick-service restaurant (QSR) operators.
Devyani International runs major global chains such as KFC, Pizza Hut and Costa Coffee across India and select international markets.
The company also owns home-grown food and beverage brands including Vaango, which specialises in South Indian cuisine, and The Food Street food court concept. Its network spans thousands of outlets across India, Nepal, Nigeria and Thailand.
Sapphire Foods, meanwhile, holds franchise rights for KFC, Pizza Hut and Taco Bell in India, Sri Lanka and the Maldives. The company operates hundreds of restaurants across South Asia, catering to dine-in customers as well as takeaway and online orders.
The merger is expected to come into effect over the next 12 to 15 months, subject to the completion of regulatory and procedural formalities.
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