Mumbai/IBNS, Jan. 2 -- Shares of Devyani International surged 8% on Friday after the company announced its merger with Sapphire Foods India, even as Sapphire Foods' stock fell nearly 6% in early trade, media reports said.

Under the strategic deal, Sapphire Foods India - which operates KFC and Pizza Hut outlets - will be merged into Devyani International Limited (DIL), one of India's largest quick-service restaurant (QSR) operators.

Devyani International runs major global chains such as KFC, Pizza Hut and Costa Coffee across India and select international markets.

The company also owns home-grown food and beverage brands including Vaango, which specialises in South Indian cuisine, and The Food Street food court concept. Its network span...