Sapphire Foods IPO

Sapphire Foods India Private limited is YUM’s largest franchisee operator in the Indian subcontinent in terms of income in the financial year 2020. In terms of income for the fiscal year 2021 and the number of locations open as of March 31, 2021, they are also Sri Lanka ‘s biggest multinational QSR chain. Sapphire Foods IPO will hit the market 09 November 2021

About

Sapphire Foods India Private Limited owned and operated 204 KFC outlets across India and the Maldives, 231 Pizza Hut locations in India, Sri Lanka, and the Maldives, and 2 Taco Bell restaurants in Sri Lanka.

KFC, Pizza Hut, and Taco Bell generated system sales of $26.2 billion, $11.9 billion, and $11.7 billion, correspondingly, in 2020.

They want to be India’s finest restaurant operator by providing excellent cuisine, a wonderful experience, and a great value to their consumers.

As part of their brand and cuisine categories expansion, they run their restaurants in high-traffic, high-visibility sites in important metropolitan regions and cities throughout India.

They also introduce additional restaurants in new towns.

Franchisee Agreement

Their franchisee agreement with YUM enables them to operate under the KFC brand in multiple regions in India and the Maldives. While the Pizza Hut brand in a few states in India and across Sri Lanka and the Maldives.

It also enables them to operate the Taco Bell brand across Sri Lanka (jointly, the “Territories”) on a non-exclusive basis while utilising YUM’s system and system assets.

Their Franchisee Arrangement also grants us the ability to use YUM’s system and system property in all parts of company operations.

The flexibility to conduct local or regional campaigns with YUM’s consent, while complying to YUM’s worldwide quality assurance requirements.

Main Pillars

The following are the main pillars of their customer proposition:

• KFC, Pizza Hut, and Taco Bell all have unique product offers, with KFC, Pizza Hut, and Taco Bell being market leaders in chicken, pizza, and Mexican-inspired cuisine, respectively.
• At their restaurants, they provide items that are freshly prepared every day.
• A comprehensive range of menu selections, including meal and snack alternatives for all times of the day.
• System-wide operational procedures and hygiene that are consistent with KFC, Pizza Hut, or Taco Bell’s worldwide standards in terms of product quality, flavour criteria, food preparation techniques, food safety, cleanliness, and client service standards, as necessary.

Sapphire Foods IPO

Sapphire Foods India limited, headquartered in Mumbai has submitted Draft Red Herring Prospectus(DRHP) to Securities and Exchange Board of India(SEBI) for initial public offering (IPO) of 1,75,69,941 equity shares on 10 August 2021.

The Offer includes no fresh equity shares and There is an offer for sell(OFS) of 1,75,69,941 equity shares by the promoters mentioned in the DRHP.

They are now waiting for approval from Securities and Exchange Board of India(SEBI) to float the initial public offering (IPO) in the market.

Financials Trends

Basic and Diluted Earnings Per Share

Objects of the Issue

• Prepayment / repayment of all or a portion of the outstanding borrowings of the company to be availed on consolidated basis.
• To meet common corporate objectives.

Basis of the offer

The following are some of the fundamental criteria and key strengths that contribute into determining the Offer Price:

• Leading quick-service restaurant brands with a large market presence and size.
• YUM has a strong relationship with us.
• Consistent focus on providing excellent customer service.
• Excellence in operations.
• For growth, a scalable new restaurant economic model has been developed.
• Great place to work, with a seasoned management team and institutional backing.

Sapphire Foods Peer Comparison

Sapphire Foods IPO Details

Sapphire Foods IPO Date

Sapphire Food IPO opening date is 09 November 2021, and the closing date is 11 November 2021. The issue may list in 22 November 2021.

Basis of Allotment

Sapphire Foods IPO Allotment Status

Allotment of equity stocks subject to the Fresh Issue and transfer of the Promoter Selling Shareholders’ OFS Stocks to the winning Bidders subject to the Offer for Sale. Nevertheless, the status of the allotment has yet to be revealed.

Here, you can find the Allotment Status of Sapphire Foods IPO .

Sapphire Foods IPO GMP

Sapphire Foods IPO Grey Market Premium is 76.

Sapphire Foods IPO Review

If you are looking for answer to your question Shpphire Foods IPO is good or bad here is the answer. You should subscribe this IPO for both view long term and listing gains.

The business model of the company is simply brilliant & Management is fantastic. It will outperform Devyani International for sure in long term.

Sapphire Foods IPO Risk

• The Coronavirus disease (COVID-19) pandemic has had a significant impact on their industry and may continue to do so.
• For the financial years 2021, 2020, and 2019, they recorded a restated loss for the year after tax, and they may incur further losses in the future.
• Their Company, Subsidiaries, and Directors are all involved in ongoing legal procedures.
• Their inability to detect and adapt to changes in customer tastes and eating patterns might hurt our bottom line.
• It’s possible that their marketing and communication initiatives aren’t doing enough to raise brand recognition.
• They might not be able to control the negative impacts of social media on their reputation.

Other Threats

• Certain provisions of their shareholders’ licensee shareholders’ agreement may have a negative impact on their company operations.
• Increased competition in the QSR chain sub-segment may have a negative impact on their company.
• Their success is dependent on the KFC, Pizza Hut, and Taco Bell brands’ global popularity and reputation, as well as YUM’s marketing efforts and innovations.
• They are exposed to foreign exchange risks, which might have a negative impact on their operating performance.
• It’s possible that they won’t be able to effectively implement, deploy, and maintain their value leadership approach.
• Variations in the cost of ingredients, packaging materials, and other expenditures may have a negative impact on their profitability.

Sapphire Foods IPO Brokerage views

• Yes Securities : Not Updated
• Choice Brokering: Not Updated
• Axis Securities: Not Updated
• IIFL Securities: Not Updated
• Trade swift: Not Updated
• Anand Rathi : Not Updated
• ICICI Securities: Not Updated

Sapphire Foods IPO Subscription Status

Promoters

• Sapphire Foods Mauritius Limited
• QSR Management Trust

Promoter Holding