Devyani International Limited — PPTs, 24-04-2025: Investor Presentation

**Financial Highlights:** Devyani International Limited (DIL) plans to acquire a controlling stake in Sky Gate Hospitality Private Limited, which operates five popular brands, including Biryani By Kilo and Goila Butter Chicken. The anticipated turnover for the three brands DIL intends to acquire is approximately ₹277 crore for FY24-25. The equity valuation at the company level is around ₹519 crore, with a consideration of approximately ₹419 crore for the transaction, mostly settled through an equity swap.

**Strategic Initiatives and Growth Drivers:** This acquisition aligns with DIL's strategy to expand its market presence in the food and beverage sector. DIL aims to enhance its brand portfolio while divesting two of the five brands over the next nine months.

**Business Developments:** Sky Gate currently operates over 100 stores across 40+ cities in India, and this acquisition will strengthen DIL’s footprint in the competitive food delivery market.

**Market Position and Competitive Advantage:** With brands known for their delivery-first and cloud kitchen models, Sky Gate has a significant competitive edge, especially in the biryani segment. The acquisition positions DIL strategically within the growing demand for convenient, quality food options.

**Investor Implications:** The deal is expected to close by the end of May 2025, which could provide positive growth opportunities for DIL, albeit with a minor dilution of around 1.93% for existing shareholders. Investors should monitor this acquisition as a potential growth driver for long-term value.