Sapphire Foods India Limited IPO Details

Dates, Price band, Lot size, Risks, Review and broker recommendations etc.
Sapphire Foods IPO

Sapphire Foods IPO: Key Details

  • Grey Market Premium (GMP) today: 110 – 120

Note: We neither trade nor encourage our readers to trade in the Grey Market. We share the GMP information for educational purposes only, so that, you can make an informed decision.

Company Information

Sapphire Foods India Limited, incorporated in 2009, is one of YUM’s franchisee operators in the Indian subcontinent with revenue from operations of ₹ 13,404.12 million and ₹ 10,196.19 million for the financial years 2020 and 2021, respectively. They are also Sri Lanka’s largest international QSR chain, in terms of revenue for the financial year 2021 (with revenue of ₹ 1.90 billion representing 35% of the total market revenue), and a number of restaurants operated as of March 31, 2021 (with 68 restaurants representing 39% of the total number of outlets in the market) (Source: Technopak Report). They have also established
a presence in the Maldives.

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 two 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.

Competitive Strengths

  • Leading QSR brands with a substantial market presence and scale;
  • Strong relationship with YUM;
  • Continuous focus on delivering great customer experience;
  • Operational excellence;
  • Scalable new restaurant economic model for expansion; and
  • Great place to work led by experienced management team and backed by institutional capital.

Company Strategy

  • Accelerate conversion from unorganized food services to the company brands
    • Continuously enhance relevance of the current brands
    • Leverage omni-channel strategy
    • Leverage strength on cost efficiencies, manage unit economics and achieve economies of scale through operational leverage
    • Fast-paced restaurant expansion to capitalize on growth opportunities
  • Pursue inorganic growth

Proceeds from Sapphire Foods IPO will be used to:

The Company will not directly receive any proceeds from the Offer (the “Offer Proceeds”) and all the Offer Proceeds (net of any Offer related expenses to be borne by the Selling Shareholders) will be received by the Selling Shareholders, in proportion to the Offered Shares sold by the respective Selling Shareholders as part of the Offer

Sapphire Foods IPO: Financials

201920202021 Mar2021 Jun
Revenue from Ops₹1193.8₹1340.4₹1019.6₹303.10
Profit before Excep*₹(68.3)₹(66.6)₹(98.7)₹(25.6)
Profit after Tax(69.1)₹(164.2)₹(104.1)₹(25.4)
EPS (Basic)(14.95)(31.36)(19.04)(4.94)
*Tax and Exceptional Items | ₹ in Crores, except EPS

As of March 2020EPS (Avg*)P/E (Floor)P/E (Cap)
Based on basic EPS(22.46)
* Weighted Average for last 3 years

Sapphire Foods IPO: Comparison with listed industry peers

CompanyEPSP/E
Sapphire Foods(22.46)*N/A^
Highest17.55220.4
Lowest(5.47)N/A^
Sector Average N/A^
* Weighted Average for last 3 years,
^ Not applicable since EPS is negative

Sapphire Foods IPO Dashboard

Issue Details

TypeValue
Issue Size2073 Cr
Fresh Issue2073 Cr
Face Value₹10/- per Equity Share
IPO Price₹1120 – ₹1180
Lot Size12 shares
LotsMin 1 – Max 14

Key Dates

Date TypeDate
Bid Open9/11/2021
Bid Close11/11/2021
Allotment Finalization16/11/2021
Initiation of Refunds17/11/2021
Credit of Shares18/11/2021
Listing Date22/11/2021

Lot Size and Price

LotsSharesAmount
112₹14,160
14168₹1,98,240

Promoter Group Holding

HoldingPercentage
Pre-Issue60.08%
Post-Issue49.97%

Sapphire Foods IPO: Investor Quota and Shares Offered

Investor TypeQuotaShares on Offer
QIB75%52,70,983 shares
NII15%26,35,491 shares
RII (Retail)10%17,56,994 shares
Total100%96,63,468 shares

Sapphire Foods IPO: Risks

  • They reported restated loss for the period / year after tax for the three months ended June 30, 2021 and 2020 and the financials years 2021, 2020 and 2019 and may incur additional losses in the future.
  • They may suffer uninsured losses or experience losses exceeding limits, and we may have to make payments to cover uninsured losses.
  • They have incurred indebtedness and may incur additional indebtedness in the future, which could affect the ability to obtain future financing or pursue a growth strategy.
  • There are material outstanding legal proceedings involving the Company, Subsidiaries and Directors.

For complete internal and external risk factors, you can refer to the RHP of the company.

Sapphire Foods IPO: Registrar and Lead Managers

Registrar of the Issue

Link Intime

C-101, 247 Park
L B S Marg, Vikhroli (West)
Mumbai 400 083
Maharashtra, India

Phone: +91 22 4918 6200
Email: [email protected]

Lead Managers of the Issue

JM Financial Limited
BofA Securities India Limited
ICICI Securities Limited
IIFL Securities Limited

Phone: +91 22 6630 3030
Email: [email protected]

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