Samara Capital-Backed Sapphire Foods Submits Papers with SEBI

Sapphire Foods India Ltd, one of the major Pizza Hut and KFC store operators in India, has submitted its Draft Red Herring Prospectus (DRHP) with SEBI for an IPO. This comes after Devyani International, another KFC and Pizza Hut operator, floated its IPO last week on 4 August.

A Close Look at the Company

Sapphire Foods India Ltd. is one of the leading franchisees of Yum! Brands in the Indian subcontinent. The company has the expertise of operating and managing over 400 KFC, Pizza Hut and Taco Bell outlets throughout India, Sri Lanka, and the Maldives.

Incorporated in 2015, Sapphire Foods was formed by acquiring more than 250 Pizza Hut and KFC stores in India and Sri Lanka.

As of March 2021, the brand manages:

• 231 Pizza Hut outlets in India, Maldives and Sri Lanka
• 204 KFC outlets in Maldives and India
• 2 Taco Bell outlets in Sri Lanka

This restaurant operator comes with a long list of marquee investors such as:

• Goldman Sachs
• Samara Capital
• CX Partners
• Edelweiss and
• Creador

Details of its Upcoming IPO

As per the DRHP, Sapphire Foods IPO will entirely be an offer for sale of shares by existing shareholders and promoters. The OFS will consist of a total of 1,75,69,941 shares.

Here is a list of Sapphire Foods Ltd shareholders and promoters who will be divesting their shares through the IPO:

• WWD Ruby Ltd. is going to sell 48,46,706 shares
• Amethyst will be offloading 39,61,737 shares
• Edelweiss Crossover Opportunities Fund is going to sell off 16,15,569 shares
• Sapphire Food Mauritius Ltd. is set to divest 55,69,533 equity shares
• QSR Management Trust will exit 8,50,000 shares
• AAJV Investment Trust is selling 80,169 shares

Ahead of its IPO, Sapphire Foods has managed to raise Rs. 1,150 crores from various private equity funds in two rounds. The list of private equity funds included TR Capital, NewQuest Capital Partners and Creador.

Financial Overview

Investors should have a basic idea about the financial performance of any firm before investing in it. Sapphire Foods Ltd. has registered a revenue of Rs. 1,019.62 crores in 2021 as opposed to Rs. 1,340.41 crores last year.

The net loss of the company stood at Rs. 99.89 crores for the same period against Rs. 159.25 crores in the previous year.

Bottom Line

The company feels that KFC and Pizza Hut will be growing rapidly due to the expanding middle-class consumer base in the subcontinent. Moreover, there has been a massive increase in take-away and delivery services owing to pandemic-related restrictions. This has made the company focus on building smaller formats for newer outlets.

The company hasn’t yet released any details regarding its public offering. Investors interested in subscribing to this IPO can stay updated with more information available on Angel One blogs.

Frequently Asked Questions

1. Where will Sapphire Foods IPO be listed?

This IPO will be listed on both NSE and BSE.

2. Who are the lead managers of Sapphire Foods IPO?

BofA Securities India, IIFL Securities, ICICI Securities, JM Financial are the book running lead managers of this IPO.

3. When will the Sapphire Foods IPO open?

The dates for the Sapphire Foods IPO are yet to be disclosed.