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.

Sapphire Foods India Limited IPO APPLICATION PROCESS WITH ZERODHA

It is very easy to apply for an IPO now if you have a DEMAT account with Zerodha. Follow the steps below for the same :

  1. Logging into Zerodha console through its website or KITE platform.
  2. Clicking the IPO link present in the Portfolio section.
  3. Click the Sapphire Foods India Limited IPO button and press the BID button.
  4. Entering the details asked for like UPI ID, Quantity and price.
  5. Submit the application form for the IPO.
  6. Visiting the application of UPI for approving the transaction.

Now, applying for an IPO online is possible with most of the Discount and online brokers.

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