Devyani International , one of the country's leading quick service operators, announced that its subsidiary Sky Gate Hospitality has sold its stake in Peanut Butter and Jelly Ltd to Heritage Foods. The transaction involves the complete divestment of Sky Gate's ownership in the health-focused ice cream brand owner.

Transaction Details

The divestment was executed through a Share Purchase Agreement between Sky Gate Hospitality and Heritage Foods. The key parameters of the transaction are outlined below:

Peanut Butter and Jelly Pvt Ltd owns the health-focused 'Get-A-Whey' brand, which specializes in producing high-protein, no-added-sugar ice creams and desserts. The brand caters to the growing health-conscious consumer segment in the frozen dessert market.

Impact on Corporate Structure

Following the completion of the share purchase agreement, Peanut Butter and Jelly Ltd has ceased to be a subsidiary of Sky Gate Hospitality and a step-down subsidiary of Devyani International with immediate effect. This marks a complete exit from the health-focused ice cream segment for the quick service restaurant operator.

Recent Corporate Developments

Devyani International had acquired Sky Gate Hospitality last year, bringing popular food brands under its umbrella including:

• Biryani By Kilo
• Goila Butter Chicken

Last week, Devyani International, part of the Jaipuria family-promoted RJ Corp Group, announced a significant merger with Sapphire Foods through a share swap arrangement. The scheme of merger requires mandatory regulatory clearance before implementation.

Strategic Positioning

Once the merger with Sapphire Foods receives approval, the combined entity will become one of the largest quick service restaurant chains with potential to cross USD 1 billion in revenue. Both Sapphire Foods and Devyani International operate as franchise partners for Yum! Brands' restaurant chains, including KFC and Pizza Hut, strengthening their position in the Indian QSR market.

Devyani International has successfully completed the divestment of its stake in Peanutbutter and Jelly Private Limited through a subsidiary transaction that reshapes the company's corporate structure. The completion was announced on January 8, 2026, marking the conclusion of a deal initially disclosed in late December 2025.

Transaction Details

The divestment involved Sky Gate Hospitality Private Limited, a subsidiary of Devyani International, selling its entire 51% equity stake in Peanutbutter and Jelly Private Limited to Heritage Foods Limited. The transaction parameters are outlined below:

Corporate Structure Impact

The completion of this sale has immediate implications for Devyani International's corporate structure. Peanutbutter and Jelly Private Limited, which was previously a subsidiary of Sky Gate and a step-down subsidiary of Devyani International, has ceased to hold these relationships with immediate effect from the completion date.

The transaction was executed under a Share Purchase Agreement that Sky Gate Hospitality had entered into with Heritage Foods Limited. This agreement was initially disclosed to the stock exchanges on December 30, 2025, in compliance with Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015.

Regulatory Compliance

Devyani International has maintained full transparency throughout this transaction process by providing timely disclosures to both the National Stock Exchange of India Limited and BSE Limited. The company's Chief Sustainability Officer and Company Secretary, Pankaj Virmani, signed the completion notification, ensuring proper regulatory compliance.

Business Context

Devyani International operates as a multi-brand restaurant company with franchises including KFC, Pizza Hut, Costa Coffee, and several other food and beverage brands. The divestment of the Peanutbutter and Jelly stake represents a strategic corporate action that allows the company to optimize its subsidiary portfolio and focus resources on core operations.