Blog

Sapphire Foods India Limited IPO : Highlights and Company Details

Sapphire Foods is a constantly expanding QSR chain which has its major business in India, Sri Lanka and Maldives. The company is a subsidiary of YUM Brand. The number of restaurants has increased from 370 to 440 in the previous year itself. The company choses smart locations for business initiation and has been the largest franchise operator for YUM brands.

IPO DETAILS

Sapphire Foods India Limited IPO is set to launch on 9th Nov., 2021. The subscription timeline extends till 11th Nov, 2021. The size for the IPO is 2073.25 Crore Rs.. No Shares are issued through Fresh Issue. Shares issued through Offer for Sale are worth Rs. 2073.25 Crore. The lot size is 12 shares and the price range is 1120 Rs. – 1180 Rs./ share. The company is going to get listed at both the exchanges NSE and BSE. The face value per share is Rs.10 and this is a book built issue. The registrar for the company is Link Intime India Private Limited.

TABULAR REPRESENTATION OF IPO DETAILS

IPO OPENING DATE	9th Nov, 2021
CLOSING DATE FOR IPO	11th Nov, 2021
ISSUE TYPE	Book Built Issue
Face Value per share	10 Rs. per share
IPO price band	1120 Rs. – 1180 Rs.
LOT SIZE	12 shares
MINIMUM ORDER QUANTITY	12 shares
ISSUE SIZE	2073.25 Crore Rs.
OFFER FOR SALE	2073.25 Crore Rs.
FRESH ISSUE	No shares issued for Fresh Issue
LISTING AT	NSE, BSE
LISTING DATE	22nd Nov, 2021

IMPORTANT DATES

IPO OPENING DATE	9th Nov, 2021
CLOSING DATE FOR IPO	11th Nov, 2021
IPO ALLOTMENT DATE	16th Nov, 2021
REFUNDS	17th Nov, 2021
DEMAT A/C CREDITED ON	18th Nov, 2021
IPO LISTING DATE	22nd Nov, 2021

The Sapphire Foods India Limited IPO begins for subscription from 9th Nov, 2021. The IPO subscription would continue till 11th Nov, 2021. The allotment status for the shareholders who applied would come on 16th Nov, 2021. The refunds for the ones who did not get allotment would be initiated on 17th Nov, 2021. The DEMAT accounts of shareholders would be credited on 18th Nov, 2021. The listing of the company would be accompanied on 22nd Nov, 2021.

Lead Managers And Promoters

The lead managers are :

ICICI Securities Limited
J.M. Financials Consultants Private Limited
BofA Securities India Limited
IIFL Securities India Limited

The promoters for the Company are Sapphire Foods Mauritius Limited and QSR Management Trust.

The minimum lot size for the company is decided at 12 shares. This holding accounts to 14160 Rs.. The maximum lot size is decided at 168 shares. This amounts to Rs. 198240 Hence the company’s final holdings would be set as :

	Shares	Amount
Minimum	12 shares	14160 Rs
Maximum	168 shares	198240 Rs

OBJECTIVES FOR THE IPO

The funds can be utilized for General corporate purposes.
The company wants to market its brand name and hence the IPO can suffice both the purposes at once. First of Raising money and secondly of being a known brand in India.

COMPANY FINANCIALS

Particulars (in Million Rs.)	2020-21	2019-20	2018-19
ASSETS	13489	13806	15674
REVENUE	10812	13517	12062
NET PROFIT	(998)	(1592)	(695)

The assets of the company have been stable over the course of time. The restaurants have increased but the amount has decreased which means that ownership of assets has been decreasing. This is a probable reason for the revenue stream being high on account of such a decreasing asset base (due to sale of assets). Also the company’s losses are a lot. WEven without COVID the losses almost increased by 900 Million Rs. This is a huge hit for the company. Post that COVID left a huge impact on the food business. Hence one should wait and watch and probably avoid investing highly into Sapphire Foods.

PROS

YUM brands largest franchise owner.
The company has a large number of restaurants under its watch. It has diversified brands running under its portfolio.
Constant expansion plans have been taking place from the company.
More than 100 restaurants have increased over the last year.

CONS

The losses of the company have been increasing over the past years. It decreased in last year but however due to COVID it has suffered majorly in its business transactions.
The revenue has been decreasing as well. This is not a good sign for any company. However the COVID is to blame in such situations but the assets have been stable and revenue has been decreasing which signals a negative effect from the company.