Sapphire Foods India IPO - 7 Things to Know
The IPO of Sapphire Foods India opens on 09 November. Like Devyani International, which had raised money in the IPO market just a few months back, Sapphire Foods is also an operator franchisee of YUM Brands in the Indian sub-continent.
7 things to know about Sapphire Foods India IPO
1) Sapphire Foods India is the largest franchisee operator of YUM Brands in the Indian sub-continent in terms of annual revenues. Interestingly, Sapphire Foods India is also the largest QSR (quick service restaurant) chain in Sri Lanka.
The company operates a total of 231 Pizza Hut restaurants in India, Sri Lanka and Maldives. It also operates 204 KFC restaurants in India and Maldives and 2 Taco Bell restaurants in Sri Lanka.
2) The IPO which opens on 09-Nov and closes on 11-Nov will offer 175.70 lakh shares by way of an offer for sale (OFS). While the pricing is yet to be decided, the market reports are that the issue size could be in the range of Rs.1,500 crore to Rs.2,000 crore.
3) The basis of allotment of Sapphire Foods India will be finalized on 16-November while the refunds will be initiated on 17-November. The shares will be credited to the demat accounts of eligible shareholders on 18-November, while the IPO will list on 22-November on the BSE and NSE.
4) Since the issue will entirely be an OFS, there will be no fresh funds coming into the company. The Sapphire Foods India IPO is only intended to give partial exit to early investors, list the company on the bourses, get an indicative market valuation and use equity as a currency for inorganic growth in future.
5) The company is loss making due to the front ending of expansion and marketing costs. For FY21, Sapphire Foods India reported net losses of Rs(99.90cr) on revenues of Rs.1,081.24 crore. Even in the latest Jun-21 quarter, it has made losses of Rs.(-26.4cr).
6) Some of the major strengths that Sapphire Foods India brings to the table are size, delivery track record, exposure to touchpoint customer experience, strong quality control processes and an absolutely scalable business model.
7) The IPO of Sapphire Foods India will be lead managed by BOFA Securities, ICICI Securities, IIFL Securities and JM Financial. The company has appointed Link Intime India as the registrar to the IPO.
Sapphire Foods India has grown its total number of restaurants in the Indian sub-continent from 376 to 437 over the last two years and remains a strong play on the fast growing QSR market in India.
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