Sapphire Foods IPO: GMP, other details to know as issue opens for subscription tomorrow
Premium- Sapphire Foods' IPO will be entirely an OFS of 1,75,69,941 equity shares by promoters and existing shareholders
KFC and Pizza Hut outlets operator Sapphire Foods India has fixed a price band of ₹1,120-1,180 a share for its ₹2,073-crore initial public offering (IPO). The initial share-sale will open on Tuesday, November 9 and conclude on November 11.
The IPO will be entirely an offer for sale (OFS) of 1,75,69,941 equity shares by promoters and existing shareholders. At the upper end of the price band, the initial public offering is expected to fetch ₹2,073 crore.
As per market observers, Sapphire Foods shares are available at a premium (GMP) of ₹120 in the grey market today.
“Further, Sapphire Foods India has a better revenue per store compared to Devyani International. On the EBITDA front, the company is continuously showing improvement. Considering all the positive factors, we believe this valuation is at reasonable levels. Thus, we recommend a subscribe rating on the issue," said Angel One in a note.
JM Financial, BofA Securities, ICICI Securities and IIFL Securities are the lead managers to the company's public issue. The equity shares of the company will be listed on BSE and NSE.
Sapphire Foods is YUM’s largest franchisee operator in the Indian subcontinent. The company’s association with Yum started in 2015 and they presently have the non-exclusive rights to operate restaurants under 3 of YUM’s leading brands, namely, the KFC, Pizza Hut and Taco Bell brands in the Territories.
As of June 30, 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. Total number of restaurants are 450 as of June 30, 2021.
Devyani International, which is the other franchisee of Yum! Brands in India, operates 297 Pizza Hut stores and 264 KFC stores. It launched its IPO in August.
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