Sapphire Foods India Limited – Globe Capital
Sapphire Foods India Limited
Closed
Price Band
Rs. 1120 – 1180
IPO Issue Period
Nov 09, 2021 to Nov 11, 2021
Issue Size
Rs. 2073.25Cr.
Face value
Rs. 10/-
Fresh issue
NIL
Offer for sale
Rs. 2073.25 Cr.
Minimum Shares for Retail
12 shares
Maximum Shares for Retail
168 shares
Listing on
NSE, BSE
Issue Type
Book Building
Tentative Listing Date
22-Nov-21
QIB
Not More than 75% of the offer
NII
Not less than 15% of the offer
Retail
Not less than 10% of the offer
Registrar to the Issue
Link Intime India Private Ltd

Sapphire Foods India Limited (“Sapphire Foods”) is YUM’s largest franchisee operator in the Indian subcontinent with revenue from operations of Rs. 1,340.41 crore for the financial years 2021. They are also Sri Lanka’s largest international QSR chain in terms of revenue for the financial year 2021 (with revenue of Rs. 190 crore representing 35% of the total market revenue) and number of restaurants operated as of March 31, 2021 (with 68 restaurants representing 39% of the total number of outlets in the market). They have also established a presence in the Maldives. As of June 31, 2021, they owned and operated 209 KFC restaurants in India and the Maldives, 239 Pizza Hut restaurants in India, Sri Lanka and the Maldives, and 2 Taco Bell restaurants in Sri Lanka. In 2020, KFC, Pizza Hut and Taco Bell recorded system sales worldwide of US$26.2 billion, US$11.9 billion and US$11.7 billion, respectively. The company has an in-house supply chain function and works with vendor partners for food ingredients, packaging, warehousing, and logistics. The company operates warehouses across 5 Indian cities and has invested in building technology solutions in their restaurants. The company employs YUM brand’s global online and digital channel solutions to enhance customer experience and achieve operational efficiency and financial control. The company operates its restaurants at high traffic and high visibility locations in key metropolitan areas and cities across India and develop new restaurants in new cities as part of its expansion strategy. QSR Management Trust and Sapphire Foods Mauritius Limited are the company promoters.

For year/ period ended ( in Cr.)

31 Mar 2021 31 Mar 2020 31 Mar 2019
Total Revenue 1019.62 1340.41 1193.82
Profit After Tax -99.9 -159.25 -69.4
EPS
OPM(%)
PATM(%)
  • One of India’s largest restaurant franchisee operators and Sri Lanka’s largest international QSR chain
  • YUM’s largest franchise operator in the Indian subcontinent in terms of revenue
  • Focus on delivering excellent customer experience
  • Quality control and operational excellence
  • Scalable business model
  • Experienced management team with robust corporate governance practices.
  • Carry out the offer for sale of up to 17,569,941 equity shares by the selling shareholders,
  • Achieve the benefits of listing the equity shares on the stock exchanges, and
  • Enhancement of company’s brand name amongst existing and potential customers and creation of a public market for equity shares in India.

While we are witnessing fancy for food chains despite their loss-making operations, many companies have thrown their hats in the fray to encase the ongoing boom. Though all of them have bright prospects ahead and may turn the winds in their favour once the pandemic scare gets over, these investment opportunities are purely meant for the long term rewards. Due to madness seen in the recent past for fancy pricing for loss-making units, such bets may be lapped up by risk seekers investors, others can stay away.

Timeline
Application Start
09-11-2021
Application End
11-11-2021
Allotment Begins
16-11-2021
Refund Initiation
17-11-2021
Allotment Date
18-11-2021
Listing on exchange
22-11-2021
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