Devyani-Sapphire Merger: Small Change Shaked the Ownership

Devyani International

shares gained as much as 4.02% after the company revised the structure of its proposed merger with Sapphire Foods India. The merger itself remains on track, but the proposed secondary share sale between Sapphire Foods Mauritius and Arctic International has been mutually called off. What Has Changed? Under the revised arrangement, Sapphire Foods Mauritius will instead receive Devyani International shares through the merger, just like other Sapphire Foods shareholders. Importantly, the share-swap ratio remains unchanged at 177 Devyani shares for every 100 Sapphire Foods shares. The major change is in the expected post-merger ownership structure: Promoter & promoter group: 41.99% vs 61.37% earlier Public shareholders: 58.01% vs 38.63% earlier Outstanding shares: Expected to rise from ~123.29 crore to 180.17 crore Why Is the Market Reacting? The revised arrangement does not change the swap ratio, but it significantly changes who will own the combined company after the merger. The market response has been positive, with Devyani already gaining nearly 29% over the past month. However, the 14-day RSI at 71.8 indicates an overbought zone, even though the broader technical setup remains bullish as the stock trades above all eight key SMAs.