Devyani International to sell Peanutbutter & Jelly stake to Heritage Foods for Rs 9 crore

Devyani International Ltd, which operates KFC and Pizza Hut in India, said its subsidiary Sky Gate Hospitality Pvt Ltd has signed a share purchase agreement with Heritage Foods Ltd to sell its entire 51% stake in Peanutbutter and Jelly Pvt Ltd.

In a regulatory filing, Devyani International said Sky Gate entered into the agreement on December 30, 2025. The transaction is expected to be completed on or before January 31, 2026.

Upon completion, Peanutbutter and Jelly will cease to be a subsidiary of Sky Gate Hospitality and a step-down subsidiary of Devyani International.

The company said it will receive Rs 9 crore as consideration for the sale of shares.

Devyani International recalled that it had disclosed on April 24, 2025 the acquisition of about 80.72% equity stake, on a fully diluted basis, in Sky Gate Hospitality Pvt Ltd, along with its subsidiaries Blackvelvet Hospitality Pvt Ltd, Say Chefs Eatery Pvt Ltd and Peanutbutter and Jelly Pvt Ltd.

Following the acquisition, Sky Gate and its subsidiaries became subsidiaries of Devyani International with effect from June 10, 2025. Sky Gate holds a 51% equity stake in Peanutbutter and Jelly on a fully diluted basis.

The company noted that 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 for the financial year ended March 31, 2025.

Heritage Foods Ltd, the buyer, is a dairy company with operations across 17 states, offering products including milk, curd, butter, paneer and other value-added dairy items.