Sapphire Foods India, a franchise operator of KFC and Pizza Hut restaurants, will launch its initial public offering (IPO) for subscription on November 9. The nearly 17.5 million shares public offering is wholly an offer for sale (OFS) by the promoters and investors.
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The firm will not receive any funds from this offer since all money, minus issue costs will be distributed to shareholders who are selling their holdings.
The IPO will begin on November 9 and will end on November 11. At the upper price range, the IPO is valued at Rs 2,073 crore. Promoters QSR Management Trust and Sapphire Foods Mauritius, as well as investors WWD Ruby, Amethyst, AAJV Investment Trust, and Edelweiss Crossover Opportunities Fund, are among the selling shareholders.
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Sapphire Foods India has set a share price range of Rs 1,120-1,180. Investors can place bids for a minimum of 12 equity shares and then in multiples of 12 shares. Retail investors can invest a minimum of Rs 14,160 and a maximum of Rs 1,98,240 for 14 lots, as they are permitted to invest up to Rs 2 lakh in the IPO.
As per market observers, Sapphire Foods shares are available at a premium (GMP) of Rs 120 in the grey market today.
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According to the business, up to 75% of the shares are allocated for qualified institutional buyers, 15% for non-institutional buyers, and the remaining 10% for retail investors.
Sapphire Foods is YUM’s largest franchise operator in the Indian subcontinent. As of June 30, 2021, Sapphire Foods owned and operated 209 KFC outlets in India and the Maldives, 239 Pizza Hut outlets in India, Sri Lanka, and the Maldives, and two Taco Bell outlets in Sri Lanka.
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Sapphire Foods reduced their loss in FY21 to Rs 99.9 crore from Rs 159.25 crore the previous year. Due to the Covid-19, revenue from operations fell to Rs 1,019.62 crore in FY21 from Rs 1,340.41 crore in FY20.