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Informist, Thursday, Jan. 1, 2026

MUMBAI – Sapphire Foods India Ltd. informed the bourses Thursday that the company will be merged into Devyani International Ltd. following an approval of the scheme of arrangement by boards of both companies. The merger will be completed through a share-swap mechanism in which 177 equity shares of INR 1 each of Devyani International will be issued to every 100 equity shares of INR 2 each, held by shareholders of Sapphire Foods India. 

The merger is aimed at accelerated expansion of Kentucky Fried Chicken, strengthening and revitalisation of Pizza Hut for long-term sustainable growth and scaled growth of Devyani International's emerging brand portfolio, the company said in its exchange filing. The proposed merger is subject to receipt of all the customary regulatory and statutory approvals, including approvals from the stock exchanges, the Competition Commission of India, the National Company Law Tribunal and the shareholders and creditors of both the companies.

Yum! Brands, the parent company of KFC and Pizza Hut, has granted its approval for the consolidation of both the companies. As part of the merger, Devyani International will pay a one-time charge to Yum India and the licence fee for the additional territory. Devyani International will acquire 19 KFC restaurants currently operated by Yum! India in Hyderabad. The full integration of the two entities, along with the realisation of the identified synergy benefits, is expected to be completed within 15 to 18 months from the effective date of the merger. 

For the September quarter, Sapphire Foods India reported a consolidated net loss of INR 127.7 million on revenues of INR 7.42 billion. Devyani International had reported a consolidated net loss of INR 219 million on revenues of INR 13.77 billion for the quarter ended September. Thursday, shares of Devyani International ended 0.4% lower at INR 147.43, whereas Sapphire Foods closed over 2% higher at INR 262.70 on the National Stock Exchange.  End

Reported by P. Madhu Kumar

Edited by Deepshikha Bhardwaj

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