AgenciesRelated
Mumbai: The Rs 2,073-crore initial public offer of Sapphire Foods India, the operator of KFC and Pizza Hut outlets across the country, was subscribed 6.62 times on Thursday - the final day of bidding. The issue received a bid for 6.40 crore shares against the total issue size of 96.63 lakh shares.
The portion reserved for retail investors was subscribed 8.70 times. The non-institutional investors' category received 3.46 times the shares on offer. The qualified institutional buyers' portion was subscribed 7.5 times, data from BSE showed.
The public issue was entirely an offer for sale, in which its existing shareholders and promoters offloaded 1.76 crore shares in the range of ₹1,120-1,180 apiece.
Last week, Sapphire Foods India raised ₹933 crore from 53 anchor investors by allotting 79.06 lakh shares at ₹1,180 per share. Some of the anchor investors included the Government of Singapore, Fidelity Funds, Abu Dhabi Investment Authority, Ashoka India Opportunities Fund, Sundaram Mutual Funds, ICICI Prudential Life Insurance, and Bajaj Allianz Life Insurance Company and HDFC Mutual Funds, among others.
Sapphire owned and operated 209 KFC restaurants in India and the Maldives, 239 Pizza Hut restaurants in India, Sri Lanka and the Maldives, and two Taco Bell restaurants in Sri Lanka as of June 30, 2021. The number of restaurants in these territories grew from 376 on March 31, 2019, to 450 as of June 30, 2021.
Despite making losses, most of the analysts recommended subscribing to the offer.
"Sapphire Foods India has a better revenue per store compared to Devyani International. The company is continuously showing improvement on the Ebitda front," said Amarjeet Maurya, AVP-Mid Caps, Angel One. "In terms of valuations, the post-issue FY21 EV (Enterprise Value)/Sales works out to lower than its peer Devyani International."
The portion reserved for retail investors was subscribed 8.70 times. The non-institutional investors' category received 3.46 times the shares on offer. The qualified institutional buyers' portion was subscribed 7.5 times, data from BSE showed.
The public issue was entirely an offer for sale, in which its existing shareholders and promoters offloaded 1.76 crore shares in the range of ₹1,120-1,180 apiece.
Last week, Sapphire Foods India raised ₹933 crore from 53 anchor investors by allotting 79.06 lakh shares at ₹1,180 per share. Some of the anchor investors included the Government of Singapore, Fidelity Funds, Abu Dhabi Investment Authority, Ashoka India Opportunities Fund, Sundaram Mutual Funds, ICICI Prudential Life Insurance, and Bajaj Allianz Life Insurance Company and HDFC Mutual Funds, among others.
Sapphire owned and operated 209 KFC restaurants in India and the Maldives, 239 Pizza Hut restaurants in India, Sri Lanka and the Maldives, and two Taco Bell restaurants in Sri Lanka as of June 30, 2021. The number of restaurants in these territories grew from 376 on March 31, 2019, to 450 as of June 30, 2021.
Despite making losses, most of the analysts recommended subscribing to the offer.
"Sapphire Foods India has a better revenue per store compared to Devyani International. The company is continuously showing improvement on the Ebitda front," said Amarjeet Maurya, AVP-Mid Caps, Angel One. "In terms of valuations, the post-issue FY21 EV (Enterprise Value)/Sales works out to lower than its peer Devyani International."
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