Devyani International Limited Invests in Thai Subsidiary and Secures Bank Financing
Devyani International Limited announced a significant investment in its Thai subsidiary, Restaurants Development Co., Ltd. (RD), which operates 274 KFC restaurants in Thailand. The Investment and Borrowing Committee of the Board approved an investment of approximately THB 1,210 Mn (INR 3,473 Mn) in RD, through Devyani International DMCC (DID) and Yellow Palm Co., Ltd.The investment will be used to partially retire DID debt amounting to THB 810 Mn (INR 2,325 Mn) and fund RD’s working capital and capital expenditure requirements. The net investment by the Group is approximately THB 400 Mn (INR 1,148 Mn).
DID will secure THB 400 Mn (INR 1,148 Mn) through a convertible loan from Devyani International Limited and will also obtain a short-term loan of THB 810 Mn (INR 2,325 Mn) from Axis Bank Limited, Dubai. This loan from Axis Bank Limited, Dubai will be secured by a corporate guarantee from Devyani International Limited and will be repaid upon RD's repayment of existing debt to DID.
RD reported a turnover of THB 6.13 Bn for FY 2025, THB 6.07 Bn for CY 2024, and THB 5.67 Bn for CY 2023. Following the investment, DID will hold 49.00% and Yellow Palm Co., Ltd. will hold 51.00% of RD, continuing its status as a subsidiary of both DID and the Company.
The transaction is expected to be completed by June 30, 2026, and is considered an arm’s length transaction.
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