Devyani International Share Price Jumps, Sapphire Foods Slips After Merger Announcement | Stock Market Today

Market Performance: Stock Market Today Reacts to Merger News

The stock market today opened with clear reactions from investors tracking the QSR space.

Devyani International share price saw strong buying interest, while Sapphire Foods moved in the opposite direction.

• Devyani International share price jumped up to 8% in early trade on Friday, January 2.
  • Around 9:20 am, the stock touched an intraday high of ₹157.37.
• Sapphire Foods share price came under pressure.
  • By 9:40 am, the stock slipped to an intraday low of ₹252.90.

The sharp price movement on both sides followed one trigger — the long-awaited merger announcement between Yum Brands’ two India franchise partners.

Main News: Merger Finally Moves From Talk to Table

In an exchange filing, the companies confirmed what the market had been waiting on for months.

The board has approved the merger of Devyani International and Sapphire Foods, setting the stage for a major consolidation in India’s quick-service restaurant (QSR) space.

This is not an overnight deal. The companies clearly stated that the merger will move ahead only after receiving all regulatory and statutory approvals, including:

• Stock exchanges
• Competition Commission of India (CCI)
• National Company Law Tribunal (NCLT)
• Shareholders and creditors of both companies

The entire approval process is expected to take 12 to 15 months before the merger officially comes into effect.

Once completed, Devyani International is set to emerge as one of the largest QSR operators in India by scale.

Company Details: How the Merger Will Work

The merger will be carried out through a share swap mechanism.

Here’s how the structure looks based strictly on the filing details:

• Swap ratio:
  • Sapphire Foods shareholders will receive 177 shares of Devyani International for every 100 shares they currently hold.
• Market-linked valuation:
  • At prevailing prices — about ₹147 for Devyani and ₹261 for Sapphire — the deal is broadly aligned with current market levels.
• Business transition:
  • Sapphire Foods will be dissolved without liquidation, with all operations absorbed into Devyani International.
• Asset transfer:
  • Devyani International will take over 19 KFC outlets in Hyderabad that are currently operated by Yum Brands.

Certain outlets are excluded.

Captive stores located at airports and railway stations will not be part of this consolidation.

What Changes After the Merger?

Post-merger, the structure of operations becomes simpler and more concentrated.

• KFC and Pizza Hut businesses will be housed under one listed entity.
• Devyani International will hold franchise rights across the entire Indian market for these brands.
• The merged entity will also carry forward Sapphire Foods’ Sri Lanka operations, adding to Devyani’s existing overseas presence.

From an operational standpoint, the consolidation is aimed at scale benefits and smoother execution, without altering the listed structure immediately.

Summary: What the Market Is Tracking Now?

To sum it up:

• Devyani International share price surged sharply as investors reacted to the merger clarity.
• Sapphire Foods share price slipped following the announcement.
• The merger approval is in place, but the process will take 12–15 months to complete.
• The deal is structured via a share swap, with clearly defined ratios.
• Once completed, Devyani International becomes a dominant listed QSR operator in India.

For now, the stock market today is responding to certainty replacing speculation. The real structural change, however, will unfold gradually as approvals come through over the next year.

Source: Livemint