Sapphire Foods IPO Review 2021: Sapphire Foods will be one of the tastiest IPOs to hit the markets this month after a short break. The KFC, Pizza Hut and Taco Bell operators IPO will open from November 9th and close on November 11th. The company aims to raise Rs. 2,073 Cr through the public offering.
In this article, we look into important information on the Sapphire Foods IPO. We also will find out the possible prospects of the company. Keep reading to find out!
About the Company
Sapphire Foods India Pvt. Ltd., is one of the leading franchisee operators for YUM restaurants which owns KFC, Pizza Hut and Taco Bell in the country. The company has non-exclusive rights to operate the brands not only in India but also in Sri Lanka and Maldives.
The company operated 209 KFC restaurants in India and Maldives. It operated as many as 239 Pizza Hut restaurants in India, Maldives and Sri Lanka. Its total number of restaurants stood at 450 as of 30th June 2021.
The company has not delivered a profit on the financial front for the last 3 years. But despite this, we have noticed that post the pandemic food chains and food tech companies have still successfully listed on the exchange. This is owed to the long term perspective and the expectations of a boom post the pandemic restrictions.
The company’s listed peers include:
- Jubilant FoodWorks
- Burger King
- Devyani International
- Westlife Development
Grey Market Premium
The shares of Sapphire Foods traded at a 10.16% premium in the grey market before the IPO. The shares are traded at a price of Rs.1300. This gives it a premium of Rs 120 over the issue price band of Rs 1120-1180 per share.
Key IPO Information
The promoters of the company include QSR Management Trust and Sapphire Foods Mauritius Ltd.They have appointed BofA Securities India Ltd., ICICI Securities Ltd., IIFL Securities Ltd, JM Financial Consultants Private Ltd. Link Intime India Private Ltd has been appointed as the registrar to the issue.
|IPO Size||₹2,073.25 Cr|
|Offer For Sale(OFS)||₹2,073.25 Cr|
|Opening Date||Nov 9, 2021|
|Closing Date||Nov 11, 2021|
|Face Value||₹10 per equity share|
|Price Band||₹1120 to ₹1180|
|Lot Size||12 Shares|
|Minimum Lot Size||1|
|Maximum Lot Size||14|
|Listing Date||Nov 22, 2021|
Purpose of the IPO
The company has opted for an IPO for the following reasons:
- To carry out Offer for Sale
- Achieve listing benefits
In this post, we covered the Sapphire Foods IPO Review. The Initial Public Offering opens on November 9th and closes on November 11th.
For retail investors, it can be a good opportunity to look into the company’s future prospects and apply for the IPO if they believe in the products and growth prospects of the company.
Do let us know what you think of the Sapphire Foods IPO review 2021. Are you planning to apply for this IPO or not? Comment below. Cheers!
Aron, Bachelors in Commerce from Mangalore University, entered the world of Equity research to explore his interests in financial markets. Outside of work, you can catch him binging on a show, supporting RCB, and dreaming of visiting Kasol soon. He also believes that eating kid’s ice-cream is the best way to teach them taxes.