Devyani International and Sapphire Foods have agreed to combine their quick‑service restaurant businesses, forming one of India’s biggest QSR groups.
The merger will bring together all KFC and Pizza Hut outlets in the country under a single operator. After the deal, the combined entity will run more than 3,000 restaurants and generate over ₹7,800 crore in revenue.
Shareholders will exchange stocks at a ratio of 177 Devyani shares for every 100 Sapphire shares. This ratio is almost a 1% discount for Sapphire investors, leaving little room for price arbitrage.
Management expects annual cost savings of ₹200‑₹225 crore from the second year of integration, roughly 15% of the combined EBITDA. The first‑year EBITDA boost could be ₹100‑₹150 crore, pushing pre‑Ind AS EBITDA to about ₹1,520 crore in FY28 and ₹1,950 crore in FY29.
Key sources of savings include lower royalty payments, reduced corporate overhead, and scale efficiencies in sourcing and technology.
Analysts compare the new entity to Jubilant FoodWorks, noting a potential 2.5% lift in EBITDA margin. One broker kept a Buy rating on Devyani with a target price of ₹190 for September 2026.
Valuations: Devyani trades at ~34× FY2027 EBITDA, Sapphire at ~27×. Fair‑value estimates are ₹170 for Devyani and ₹325 for Sapphire.
Devyani will buy 19 KFC stores from Yum! India for about ₹90 crore and pay a one‑time ₹320 crore for merger approval and extra territory rights. Sapphire’s promoter will sell its 18.5% stake to Devyani’s group company before the merger becomes effective.
The merger still needs regulatory clearance, which could take 12‑15 months. Full integration and synergy capture are expected within 15‑18 months after the effective date of April 1, 2026.
The combined firm will have a pan‑India presence, multiple brands and cuisines, and a stronger balance sheet to weather demand cycles. Investors should be ready for a 12‑month waiting period, but the deal aims to create a QSR powerhouse that can compete with the market leader.
Remember, this is my perspective, not a prediction. Do your own research and consider your risk tolerance before making any investment decisions.
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Join TelegramFour Indian companies have just received SEBI’s green light to raise more than ₹1,400 crore through a mix of fresh share issues and offer‑for‑sale (OFS) blocks. Companies cleared for IPOs Knack Packaging – packaging solutions provider. Shivalaya Construction – construction firm. Varmora Granito – tiles and bathware maker. Behari Lal Engineering – engineering and manufacturing company. Amount each company plans to raise Knack Packaging: ₹475 crore (fresh issue) + OFS of 70 lakh shares. Shivalaya Construction: ₹450 crore (fresh issue) + OFS of 2.48 crore shares. Varmora Granito: ₹400 crore (fresh issue) + OFS of 5.24 crore shares. Behari Lal Engineering: ₹110 crore (fresh issue) + OFS of 78.54 lakh shares. Planned use of the fresh‑issue proceeds Knack Packaging – about ₹435 crore to build a new plant in Gujarat; remaining funds for general corporate purposes. Shivalaya Construction – roughly ₹340 crore to repay borrowings; the rest for working capital. Varmora Granito – ₹320 crore to reduce debt; balance for corporate needs. Behari Lal Engineering – capital expenditure, repayment or pre‑payment of loans, and other corporate activities. Why it matters now The approvals arrive as India’s primary market is seeing record‑high fundraising. In 2025, companies have already raised about ₹1.76 lakh crore, well above the ₹1.6 lakh crore in 2024 and the ₹49,436 crore in 2023. Strong domestic liquidity and steady investor demand are driving this surge. What investors should note All four issuers will list on both the BSE and NSE, offering retail and institutional investors a chance to participate. Keep an eye on the allocation details and the pricing timeline once the final prospectuses are published. Disclaimer Remember, this is just an overview and not a recommendation. Do your own research and consider your risk tolerance before investing.
Horizon Industrial Parks, a major industrial and logistics developer, is launching an IPO to raise up to ₹4,250 crore. Here’s a simple rundown of what the offering includes and why it matters to everyday investors. What the IPO Looks Like The company plans to issue fresh equity shares only – there’s no sale of existing shares. The draft prospectus shows that about ₹2,250 crore of the money raised will go toward paying down existing borrowings. How Much Money Is Being Raised? Fresh equity offer: ₹2,600 crore Pre‑IPO placement (already secured): roughly USD 200 million (≈₹1,650 crore) Total target fund raise: about ₹4,250 crore (≈USD 500 million) Current Ownership Blackstone, the global private‑equity firm, currently holds about 89 % of Horizon Industrial Parks. The IPO will dilute this stake as new shares are issued. Who Has Already Invested? 360 ONE SBI Life Insurance SBI (State Bank of India) Radhakishan Damani EAAA DSP Investments Business Overview Horizon builds, owns, and operates logistics and industrial spaces across India. Its portfolio covers about 60 million sq ft spread over 46 assets in 10 cities. Roughly 95 % of the space is already leased, with more than 100 tenants, including over 60 % Fortune 500 companies. Why Retail Investors Might Care Large, cash‑generating asset base with high occupancy rates. Backed by Blackstone, providing strong financial support. Potential upside if the company continues to grow its footprint and tenant mix. Opportunity to buy into a sector that benefits from India’s expanding e‑commerce and manufacturing activities. Key Takeaways The IPO is mainly about raising fresh capital to clean up debt, while the pre‑IPO investors have already committed a significant portion of the funds. With a solid tenant base and backing from a heavyweight private‑equity firm, Horizon Industrial Parks could be an interesting play for investors looking for exposure to India’s logistics boom. Remember, this is perspective, not a prediction. Do your own research and consider your risk tolerance before investing.
Four Indian firms have cleared the regulator’s final hurdle and can now move forward with their public offerings. SEBI gives the green light to four IPOs The Securities and Exchange Board of India (SEBI) issued final observations for four companies, meaning they may now proceed with their initial public offerings. Varmora Granito: Fresh issue of ₹400 crore plus an offer‑for‑sale of 5.24 crore shares by promoters and existing investors. Knack Packaging: Fresh issue of ₹475 crore and an offer‑for‑sale of 70 lakh shares. Shivalaya Construction: Fresh issue of ₹450 crore together with an offer‑for‑sale of 2.48 crore shares. Behari Lal Engineering: Fresh issue of ₹110 crore plus an offer‑for‑sale of 78.54 lakh shares. Infifresh Foods withdraws its IPO filing Infifresh Foods, the B2B seafood platform formerly known as Captain Fresh, had filed a confidential IPO draft for about ₹1,700 crore in August. The company has now withdrawn those offer documents, so the offering will not move forward. What this means for investors With the SEBI approvals, the four companies can start marketing their shares to the public, potentially opening new investment opportunities. The withdrawal of Infifresh’s filing removes one possible listing from the market, which may affect sector‑specific interest. Remember, this is perspective, not a prediction. Do your own research and consider your risk tolerance before making any investment decisions.