<h1>Devyani International Updates Investment in RD, Confirms Repayment of Bank Loan and Shareholding Increase</h1>
Devyani International Ltd has provided updates regarding its investment in Restaurants Development Co., Ltd. (RD), a subsidiary operating KFC stores in Thailand, confirming the status of loans and shareholdings following recent transactions with subsidiaries DID and Yellow.
The company confirmed that both Devyani International DMCC (DID) and Yellow Palm Co., Ltd. (Yellow) completed additional investments into RD. Following these investments, the current shareholding stands at 49% for DID and 51% for Yellow in RD.
The group also detailed a corporate finance transaction involving DID. The company granted a loan convertible into equity of ~ THB 400 Mn (equivalent to ~ INR 1,148 Mn / AED 46 Mn) to DID. DID subsequently notified that its Board of Directors had approved the allotment of shares to Devyani International pursuant to the conversion of this loan, subject to approval by the Dubai Multi Commodities Centre Authority (DMCC Authority). This transaction increases the company's shareholding in DID from approximately 51% to approximately 56.7%.
In addition to the investment in RD, DID had availed a short-term loan amounting to ~ USD 25.50 million from Axis Bank Limited, Dubai, which was secured by a corporate guarantee provided by Devyani International Ltd. This transaction has since been concluded, as DID fully repaid the short-term loan to Axis Bank Limited, and the corresponding corporate guarantee has been duly released.
Overall, these activities result in a net investment of approximately ~THB 400 Mn (equivalent to ~INR 1,148 Mn) by the Group into RD.
DEVYANI Stock Price Movement
On Wednesday, Devyani International Limited's shares rallied, gaining 1.41% on the day and closing at ₹112.82. The stock saw robust trading activity, with a total of 2.21 million shares transacted during the session.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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