Sapphire Foods IPO opens today: Apply for long-term, says Anil Singhvi; lists positives, negatives of KFC, Pizza Hut operator

The initial public offer (IPO) of KFC, Pizza Hut operator's Sapphire Foods India Limited will open for public subscription today, November 9, 2021. The three-day IPO will close on November 11, 2021. The company has fixed price band of Rs 1,120-1,180 per equity share for this offer. The initial public offering is expected to raise Rs 2,073 crore.

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The IPO will be entirely an offer for sale (OFS) of 1,75,69,941 equity shares by promoters and existing shareholders. As a part of the OFS, QSR Management Trust will sell 8.50 lakh shares, Sapphire Foods Mauritius Ltd will offload 55.69 lakh shares, WWD Ruby Ltd will divest 48.46 lakh shares and Amethyst will offer 39.62 lakh shares.  In addition, AAJV Investment Trust will sell 80,169 shares, Edelweiss Crossover Opportunities Fund will offload 16.15 lakh shares and Edelweiss Crossover Opportunities Fund-Series II will divest 6.46 lakh shares.

The company had said that up to 75 per cent of the shares has been reserved for qualified institutional buyers (QIBs), 15 per cent for non-institutional buyers and the remaining 10 per cent for retail investors.

Should you subscribe?  

Zee Business Managing Editor Anil Singhvi on Tuesday recommended to apply for this issue with long-term vision. Counting positives of the company, the Market Guru said, it has strong brands like KFC and Pizza Hut under its belt. Besides, impressive track record, strong growth potential, profitable at operational level and reasonable valuations would work for this IPO, said Anil Singhvi.  

Talking of negatives, Singhvi said In August 2021 issued share at 506 Rupees, same Investors selling in IPO, while company is also yet to come in Profit. Also, it has liabilities in form of serious delays in payment of PF etc in the last three years, he said.

Sapphire Foods IPO Timeline

Application start date: November 9, 2021

Application close date: November 11, 2021

Allotment start date:  November 16, 2021

Refund initiation date: November 17, 2021

Allotment finalisation date: November 18, 2021

IPO listing date: November 22, 2021
 

About Sapphire Foods India

Sapphire Foods, an omni-channel restaurant operator and the largest franchisee of Yum Brands in the Indian sub-continent, is backed by marquee investors such as Samara Capital, Goldman Sachs, CX Partners and Edelweiss.