Devyani-Sapphire Merger Gets NSE, BSE Nod: Stocks Surge Up to 9% Yesterday
- 17th June 2026
- 11:00 AM
- 3 min read
Summary
Shares of Devyani International and Sapphire Foods surged as much as 9 per cent on 16 June 2026 after BSE and NSE gave their no objection to the companies' proposed merger scheme. The approval marks a key regulatory step for the deal, which will combine the two Pizza Hut and KFC franchise operators in India through a share swap.Mumbai | 17 June 2026
Devyani International and Sapphire Foods shares jumped up to 9% in trade on 16 June 2026 after BSE and NSE granted no objection and no adverse observations to the composite scheme of arrangement between the two companies. Under the scheme, Devyani International will acquire Sapphire Foods, consolidating two of India’s largest Pizza Hut and KFC franchise operators into a single entity.
How Did Devyani International And Sapphire Foods Shares React?
Devyani International shares opened 2.3 per cent higher at ₹113.99 and touched an intraday high of ₹121.38, up 9 per cent, on the NSE.
Sapphire Foods shares opened higher at ₹177.70 and touched an intraday high of ₹185.58, up 7 per cent.
By 11:45 AM, Devyani International was trading 4.1 per cent higher at ₹115.95, while Sapphire Foods had gained 3.6 per cent to ₹179.85.
What Did the NSE and BSE Approval Confirm?
Devyani International said in a stock exchange filing that it had received observation letters from the NSE and BSE, with no objection and no adverse observations raised on the proposed scheme of arrangement between Devyani International, as the transferee company, and Sapphire Foods, as the transferor company, and their respective shareholders.
For a detailed breakdown, read our Devyani-Sapphire merger explained article covering the share swap ratio, timeline, synergies and shareholder impact.
What Are the Next Steps for the Merger?
The scheme remains subject to further statutory and regulatory approvals, the filing said, along with approvals from the respective shareholders and creditors of both companies. The NSE and BSE clearance is one of the early regulatory milestones in this process, with further approvals still required before the scheme can be implemented.
What Does the Merger Mean for Shareholders?
Under the approved scheme, Devyani International will issue 177 equity shares for every 100 equity shares of Sapphire Foods held by eligible shareholders, with the merger structured entirely through a share swap mechanism.
What Is the Strategic Rationale Behind the Merger?
Upon completion, the merger is expected to make Devyani International one of the largest quick service restaurant operators in India by combining the operations of both companies. Devyani International is currently the largest franchisee for Yum Brands’ KFC and Pizza Hut in India, while Sapphire Foods’ portfolio includes KFC, Pizza Hut and Taco Bell.
Outlook
The merger’s progress will depend on the companies securing the remaining statutory, regulatory, shareholder and creditor approvals required to implement the scheme.
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