Sapphire Foods India – the KFC and Pizza Hut outlets operator is launching its IPO and has fixed a price band of Rs 1,120-1,180 a share for its Rs 2,073-crore initial public offering (IPO).
Issue Date And GMP
The sale is open today on 9 November and will conclude on November 11.
Sapphire Foods shares are available at a premium (GMP) of Rs 120 in the grey market today according to the market observers.
Subscribe Or Not?
Angel One said, “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,” in a note.
This public issue is having JM Financial, BofA Securities, ICICI Securities and IIFL Securities as the lead managers
With this issue, the equity shares of the company will be listed on BSE and NSE.
Company Financials
Coming to the company, it is YUM’s largest franchisee operator in the Indian subcontinent.
Sapphire Foods India’s association with Yum started in 2015.
Presently, they 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.
Sapphire Foods 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, as of June 30, 2021.
In total, it owns 450 restaurants in India as of June 30, 2021.
Prior to this, Devyani International, launched its IPO in August.
Devyani International is the other franchisee of Yum! Brands in India which operates 297 Pizza Hut stores and 264 KFC stores.
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