Sapphire Foods shares rise 9% as report says company may merge into Devyani International

Sapphire Foods and Devyani International operate KFC and Pizza Hut in India

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26 Aug, 2025 12:21

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Sapphire Foods shares rallied over 9 percent on July 4 after a report said that Yum! Brands, the American owner of popular food chains KFC and Pizza Hut, is in talks to facilitate the merger of its two franchisee partners in India, Devyani International Ltd (DIL) and Sapphire Foods.

Both Devyani International and Sapphire Foods India operate KFC and Pizza Hut as franchisee partners of Yum! Brands. The American company is now aiming to join its two Indian partners into one single entity, The Economic Times reported citing people familiar with the matter.

Devyani International may acquire all franchise rights of KFC and Pizza Hut from Sapphire Foods, or all of the KFC franchise stores in India may get consolidated under its brand name, as part of the proposed merger, the report added.

The share swap ratio for the merger may be fixed at 1:3, the report cited a source as saying. This means that every shareholders of Sapphire Foods will get one share of Devyani International for every three shares they own in the former company.

Moneycontrol couldn't independently verify the report.

Sapphire Foods shares were trading at around Rs 350 apiece in the morning, after hitting a 6-month high of Rs 354 apiece earlier in the day. Notably, this is the highest level seen by the stock in nearly six months. The stock has gained nearly 11 percent in the past one month, but has fallen over 1 percent in the past six months. It currently has a market capitalization of nearly Rs 11,226 crore.

Devyani International shares also saw a sharp rise, jumping nearly 4 percent to trade at Rs 173 apiece. The stock has gained nearly 3 percent in the past one month, but has fallen nearly 13 percent in the past six months. It has a market capitalization of nearly Rs 21,372 crore, nearly double of that of Sapphire Foods.

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