The investment, cleared by the company’s Investment and Borrowing Committee on March 10, 2026, will be routed through its subsidiary Devyani International DMCC (DID) and group entity Yellow Palm Co. Ltd.
Out of the total amount, THB 810 million (~₹232.5 crore) will be used to repay existing debt owed by RD to DID, while the remaining funds will be deployed towards working capital and capital expenditure. The net investment by the group stands at around THB 400 million (~₹114.8 crore).
To fund this, DID will raise a convertible loan of THB 400 million (~₹114.8 crore) from the parent company and secure a short-term loan of THB 810 million (~₹232.5 crore) from Axis Bank Limited, Dubai.
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The bank loan will be backed by a corporate guarantee from Devyani International and is set to be repaid after RD clears its existing dues to DID.
The acquisition is expected to be completed by June 30, 2026, as indicated across all relevant entities involved in the transaction.
Post-investment, Devyani International DMCC (DID) will hold a 49% stake in Restaurants Development Co. (RD), while Yellow Palm Co. Ltd. will hold the remaining 51%. RD will continue to operate as a subsidiary of both DID and Yellow, and consequently remain a subsidiary of the parent company.
Devyani International had earlier informed about agreements to acquire a controlling stake in RD and its holding companies in Thailand.
The Yum Brands franchisee had reported a wider net loss of ₹10.3 crore for the December quarter, compared to a loss of ₹0.5 crore in the same period last year.
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Despite the higher loss, the company had posted a healthy growth in topline. Revenue grew 11.3% on a year-on-year basis to ₹1,441 crore, up from ₹1,294.4 crore in the corresponding quarter last year.
Devyani International Ltd shares ended at ₹104.40 on the NSE, down ₹1.17 or 1.11% on March 20.
