Devyani International Limited has announced that its subsidiary Sky Gate Hospitality Private Ltd will sell its entire 51% equity stake in Peanutbutter and Jelly Private Ltd to Heritage Foods Ltd. The share purchase agreement was executed on December 30, with the transaction expected to be completed by January 31, 2026.

Transaction Details

The deal involves the complete divestment of Sky Gate Hospitality's majority shareholding in Peanutbutter and Jelly Private Ltd. Upon completion of the sale, the target company will cease to be a subsidiary of Sky Gate and a step-down subsidiary of Devyani International.

Background and Context

Devyani International had previously acquired approximately 80.72% equity stake in Sky Gate Hospitality Private Ltd on April 24, 2025. This acquisition included Sky Gate's subsidiaries Blackvelvet Hospitality Private Ltd, Say Chefs Eatery Private Ltd, and Peanutbutter and Jelly Private Ltd. Sky Gate and its subsidiaries became subsidiaries of Devyani International with effect from June 10, 2025.

Financial Impact

The company will receive ₹9.00 crore as consideration upon completion of the share transfer. Notably, Peanutbutter and Jelly became a step-down subsidiary only from June 10, 2025, and therefore did not contribute to Devyani International's turnover, revenue, income, or net worth during the financial year ended March 31, 2025.

Market Performance

Shares of Devyani International closed at ₹142.44, down ₹0.89 or 0.62%, while Heritage Foods ended at ₹451.20, up ₹5.50 or 1.23%. Heritage Foods, the acquiring company, operates as a dairy company across 17 states, offering milk, curd, butter, paneer, and other value-added dairy products.

Heritage Foods Limited has successfully executed the Share Purchase Agreement (SPA) for acquiring a 51% stake in Peanutbutter and Jelly Private Limited on December 30, 2025. The company informed stock exchanges that while the agreement has been finalized, the actual share transfer process is currently underway.

Share Purchase Agreement Execution

In its latest regulatory filing dated December 30, 2025, Heritage Foods confirmed that the Share Purchase Agreement among Heritage Foods Limited, Sky Gate Hospitality Private Limited, and Peanutbutter and Jelly Private Limited has been duly executed. This marks a significant milestone in the acquisition process that was initially announced in October 2025.

Transaction Timeline Progress

The acquisition has progressed through several key phases since its initial announcement. Heritage Foods had previously indicated in December 10, 2025 that the transaction was expected to complete within 30 days, and the execution of the SPA on December 30, 2025 demonstrates adherence to this timeline.

Regulatory Compliance and Next Steps

The company has maintained full regulatory compliance throughout the acquisition process, filing updates under Regulation 30 of SEBI Listing Regulations. Heritage Foods has committed to informing stock exchanges upon completion of the actual share transfer, ensuring continued transparency with stakeholders.

Strategic Business Expansion

This acquisition represents Heritage Foods' strategic diversification beyond its core dairy operations into the processed food segment. The 51% controlling stake will provide the company with significant influence over Peanutbutter and Jelly Private Limited's operations and strategic direction, supporting its broader expansion in the food and beverage sector.

The transaction details have been made available on the company's official website at www.heritagefoods.in , demonstrating the company's commitment to stakeholder transparency throughout the acquisition process.