Sapphire Foods IPO subscribed 49% on Day 1, retail portion booked 2.56 times

By: |
November 10, 2021 1:30 AM

The retail portion was subscribed 2.56 times on Day 1 as individual investors bid for 44,99,340 equity shares against the offered 17,57,994. However, the demand from QIBs) and NIIs remained muted, receiving subscriptions for only 2% and 5% of the portion set aside, respectively.

It also operates 209 KFC outlets in India and the Maldives and two Taco Bell restaurants in Sri Lanka.It also operates 209 KFC outlets in India and the Maldives and two Taco Bell restaurants in Sri Lanka.

The initial public offering (IPO) of Sapphire Foods, the operator of KFC and Pizza Hut outlets, was subscribed 49% on the first day of bidding. Investors bid for 47,11,212 equity shares against the offer of 96,63,468 equity shares.

The retail portion was subscribed 2.56 times on Day 1 as individual investors bid for 44,99,340 equity shares against the offered 17,57,994. However, the demand from qualified institutional investors (QIBs) and non-institutional investors (NIIs) remained muted, receiving subscriptions for only 2% and 5% of the portion set aside, respectively.

The company is looking to raise ₹2,073 crore via the initial share sale at an upper price band of ₹1,180/ share. However, it will not receive any proceeds of the issue as the offer is a complete offer for sale (OFS) by promoters and existing shareholders.

On November 8, the company had successfully closed its ₹933-crore anchor book with marquee investors like the Government of Singapore, Abu Dhabi Investment Authority, and Morgan Stanley Asia (Singapore) participating in the offer.

Sapphire Foods is one of Yum brand’s restaurant operators in the Indian subcontinent. As of June, the company operates 239 Pizza Hut outlets in India, Sri Lanka, and the Maldives. It also operates 209 KFC outlets in India and the Maldives and two Taco Bell restaurants in Sri Lanka.

Nirmal Bang Securities has assigned a ‘subscribe’ rating to the public offer. “Considering the globally known brand portfolio, growing stores, improving profitability, we have a positive view on the company. At upper band of Rs 1180, the EV/Sales come to 7.4x FY21 Sales,” the brokerage firm said in a note.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1Anand Rathi Wealth IPO to open on Dec 2; sets price band at Rs 530-550 per share
2Gemini Edibles, Data Patterns, MapMyIndia among 10 cos to get Sebi’s go ahead to float IPOs
3Rakesh Jhunjhunwala-backed Star Health IPO opens tomorrow; GMP evaporates, should you subscribe?