Sapphire Foods hits the market with 14% premium
NEW DELHI: Shares of Sapphire Foods India Ltd, which operates KFC and Pizza Hut outlets, on Thursday listed with a premium of over 14% against its issue price of ₹1,180.
The stock made its debut at ₹1,311, registering a jump of 11.10% from the issue price on the BSE. It then surged 17.25% to ₹1,383.60.
At the NSE, it listed at ₹1,350, a gain of 14.40%.
The initial public offer of Sapphire Foods India was subscribed 6.62 times on the last day of subscription on Thursday last week. The ₹2,073-crore IPO had a price band of ₹1,120-1,180 per share.
Sapphire Foods, an omnichannel restaurant operator and the largest franchisee of Yum Brands in the Indian subcontinent is backed by marquee investors such as Samara Capital, Goldman Sachs, CX Partners and Edelweiss. As of March 31, 2021, Sapphire Foods owned and operated 204 KFC restaurants in India and the Maldives, 231 Pizza Hut restaurants in India, Sri Lanka and the Maldives, and two Taco Bell restaurants in Sri Lanka.
Sapphire’s 437 stores generated ₹1,081 crore in sales in FY2021. The firm’s operating profit margin was 18% versus in FY21.
Speaking on Sapphire Foods share listing and its outlook; Santosh Meena, Head of Research at Swastika Investmart Ltd said, “Sapphire Foods IPO was listed with moderate gain in line with our expectations. Sapphire Food is a lossmaking company; however, we have seen successful companies in the market from similar spaces. If we talk about the valuations then it is coming out with 7xFY21 sales while recently listed Devyani International is trading at 14xFY21. Therefore, it is coming out with attractive valuations compared to its peers.”