Devyani International shares rally 4% after revision in Sapphire Foods merger plan
The company said the Scheme of Arrangement between Devyani International and Sapphire Foods India remains on track, while the proposed secondary sale of shares by Sapphire Foods Mauritius and Arctic International has been mutually called off.
Under the original plan, Sapphire Foods Mauritius was to sell 5.95 crore shares, representing around 18.5% of Sapphire Foods’ paid-up equity capital, to Arctic International, a group company. However, the parties have now mutually terminated the share purchase agreement following commercial discussions.
As a result, the proposed secondary transaction will no longer take place. Instead, Sapphire Foods Mauritius will receive shares of Devyani International under the merger scheme, on the same basis as other Sapphire Foods shareholders.
Devyani International clarified that the share-swap ratio and other key terms of the merger remain unchanged.
Under the scheme, Sapphire Foods India will be amalgamated into Devyani International, with shareholders of Sapphire Foods set to receive 177 Devyani International shares for every 100 Sapphire Foods shares held.
The revised arrangement also changes the expected post-merger promoter holding in Devyani International.Following the scheme, the promoter and promoter group’s holding is expected to stand at 41.99%, compared with 61.37% before the scheme. Public shareholders’ stake, meanwhile, is projected to rise to 58.01% from 38.63%. The total outstanding equity shares of Devyani International are expected to increase from around 123.29 crore shares to 180.17 crore shares following the merger.
The company said the revised shareholding reflects the termination of the secondary sale transaction and that the updated structure will be applicable under the revised scheme.
The development comes as investors continue to track the proposed combination of two major players in India’s quick-service restaurant space. The merger, once completed, is expected to create a larger listed QSR platform with an expanded shareholder base.
Share Price and Technical Indicators
Shares of Devyani International have gained nearly 29% over the past month, reflecting strong buying interest and positive momentum. The company currently commands a market capitalisation of around Rs 19,050 crore, while its 52-week high stands at Rs 191.
On the technical front, the stock’s 14-day RSI is at 71.8, placing it in the overbought zone, as readings above 70 generally indicate overbought conditions. This raises the possibility of near-term profit booking or a pullback after the recent sharp rally. That said, the broader technical setup remains bullish, with Devyani International trading above all eight key Simple Moving Averages (SMAs), signalling sustained upward momentum.
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