On the back of an almost 7-times surge in volumes, Devyani International is buzzing loud and clear in the green zone today. From its close of Rs.183.30, the stock opened higher at Rs.190.10 and rose to an intraday high at Rs.197.45, up around 8%.
The stock price rose on its announcement that it is planning to acquire 274 KFC restaurants in Thailand through its Dubai-based subsidiary Devyani International DMCC.
This acquisition will be through a share purchase agreement with Restaurants Development (RD), the current operator of the extensive KFC restaurant chain spread across Thailand.
RD operates a chain of 274 (as of September 2023) KFC restaurants across Thailand and employs more than 4,500 people.
Closing is expected to take place on or before 31st March 2024 and is subject to all customary regulatory and other approvals, as may be required for the transaction.
This acquisition will position DIL as a key player in the exciting QSR/ LSR market in Thailand and the region and will pave the way for additional growth and expansion. Thailand is a high middle-income country with almost 70 million population, attractive consumption levels, and is a strong & resilient economy.
Devyani is the largest franchisee for Yum Brands (KFC & Pizza Hut) in India and is also the sole franchisee for Costa Coffee Brand and stores in India. In addition, DIL caters to the South Indian vegetarian food lovers with Vaango. As on September 30, 2023, Devyani operates over 1,300 stores across brands in 240 plus cities in India, Nigeria and Nepal