Devyani International gains nearly 6% after block deal worth ₹871 crore

Devyani International Ltd shares surged up to 6% on Wednesday as around 5.3 crore equity shares, representing 4.4% of stake, were traded in block deals.

Shares of Devyani International were traded at a floor price of ₹164.1 per piece, taking the total deal size to around ₹871 crore. The floor price was at a 1.2% discount to Tuesday’s closing price of ₹165.75 per share on NSE.

Quick service restaurant chain operator Devyani International is the largest franchisee for Yum Brands (KFC and Pizza Hut) in India. It is also the sole franchise for Costa Coffee in the country.

Details about buyers and sellers of shares could not be ascertained immediately. Stock exchanges will update the data after the market hours.

According to reports, Yum Restaurant India Pvt Ltd has divested its entire 4.4% stake in Devyani International. Public shareholders have a total of 37.26% stake in the company.

Devyani International shares advanced 5.61% to hit a high of ₹175 per share amid the ₹871 crore block deal. The stock later pared some of the gains to trade 1.78% higher at ₹168.7 apiece on NSE at 11.35 AM.

The operator of KFC and Pizza Hut stores reported an 87% drop in net profit to ₹9.6 crore in the December quarter from ₹71.6 crore in the same quarter a year ago due to a subdued consumer sentiment.

Meanwhile, its revenue from operations rose by 6% to ₹843.13 crore in the December quarter compared to ₹790.59 crore in the third quarter of FY23.

The company opened 94 new stores in the third quarter of FY24 taking the total number of stores to 1,452. The company also expressed optimism over meeting the target of opening 250-275 new stores in FY24. Devyani International also acquired a controlling stake in Restaurants Development Co. Ltd. to run 283 KFC restaurants across Thailand.