About Sapphire Foods
IPO
Sapphire Foods is
India’s leading restaurant operator. It was incorporated in 2009 as Samarjit
Private Limited and was later renamed Sapphire Foods. In terms of earnings, in
the fiscal year 2020, Sapphire Foods is the largest franchisee operator of YUM!
Brands in the Indian subcontinent. This omnichannel restaurant operator enjoys
a global presence and operates in countries such as India, Sri Lanka, and the
Maldives. To further boost its brand image and expand its business, Sapphire
Foods intends to float its shares in the stock exchanges.
Sapphire
Foods IPO Objectives
- To avail the
benefits of getting listed on stock exchanges.
- To create a public market for Sapphire shares.
- Brand promotion.
Sapphire Foods IPO - Details
Sapphire Foods initial public offer will
be a pure offer for the sale of its equity shares by shareholders and
promoters. As per DRHP, Sapphire Foods Mauritius Ltd. plans to disinvest 55.69
lakh equity shares, Amethyst will sell 39.62 lakh equity shares, and QSR
Management Trust plans to offload 8.50 lakh equity shares. Additionally, WWD
Ruby Ltd will disinvest 48.46 lakh equity shares, AAJV Investment Trust 80,169 shares, and Edelweiss Crossover Opportunities Fund and
Edelweiss Crossover Opportunities Fund-Series II will sell 16.15 lakh equity
shares and 6.46 lakh equity shares, respectively.
Opening Date: Nov 9, 2021
Closing Date: Nov 11, 2021
Price Band: ₹ 1120 to ₹ 1180 per equity share
Issue Size: ₹ 2,073.25 Cr
Face Value: ₹ 10 per equity share
Market Lot: 12 shares
Listing at NSE, BSE
Sapphire Foods IPO
Important Dates
|
IPO Open Date |
Nov 9, 2021 |
|
IPO
Close Date |
Nov 11, 2021 |
|
Basis Of
Allotment Date |
Nov 16, 2021 |
|
Initiation
Of Refunds |
Nov 17, 2021 |
|
Credit
Of Shares To |
Nov 18, 2021 |
|
IPO
Listing Date |
Nov 22, 2021 |
Why Should You Invest in Sapphire Foods IPO?
Several key drivers
make Sapphire Foods’ public offering a lucrative opportunity for investors. For
instance, its strong financial standing and diversified global presence
continue to add value to its moat. Additionally, the experienced management
team coupled with the execution of smart business strategies offers Sapphire
Foods an edge over its competitors. In general, Sapphire Foods is among the
market leaders when it comes to the restaurant operator space. Investors
willing to speculate on the growth and prospect of the food and restaurant
business may consider Sapphire Foods a lucrative bet.
Financial highlights
|
Financial
Year |
Total
Assets In Millions |
Total
Revenue In Millions |
Total
Expenses In Millions |
Profit
After Tax In Millions |
|
March 2021 |
13,489.37 |
10,812.35 |
11,799.29 |
(998.97) |
|
March
2020 |
13,806.64 |
13,517.36 |
14,183.28 |
(1,592.47) |
How to apply for Sapphire Foods IPO?
You
can apply for the Sapphire Foods IPO in these ways:
UPI
Link your bank account to a reliable UPI ID and register it with your Angel One
account. Proceed to book Sapphire Foods IPO shares using the ID, confirm the
payment on the UPI app, and block the amount for allotment.
Demat Account
1. If
you are already a client of Angel One, apply directly for Sapphire Foods IPO, click here.
2. If you’re
a new investor open demat account for free with Angel One using link https://tinyurl.com/k79bdf4z to begin your investment
journey.
Sapphire Foods IPO -
Noteworthy Highlights
Sapphire Foods aims to
be the finest restaurant operator in the country, extending great value and
experience to its customers. Here are other key highlights of Sapphire Foods:
● It operates 204 KFC
outlets in India and Maldives.
● There are 231 Pizza
Hut outlets in India, Maldives, and India.
● It operates 2 Taco
Bells in Sri Lanka.
● Sapphire Foods
enjoys a substantial market presence courtesy of the leading QSR brands under
its umbrella.
Sapphire Foods IPO - SWOT Analysis
Strengths
- Experienced
promoters: The
company’s promoters have years of experience in the industry and boast of
a proficient team. Collectively, they help the company draw effective
strategies and operational plans.
- Brand presence: As discussed, Sapphire Foods enjoys a
robust brand presence in the food and restaurant business. It hosts brand
names such as KFC, Taco Bell, and Pizza Hut under its banner. This helps
the company generate returns by leveraging the success and popularity of
the restaurant chains under its name.
- Geographically
diversified presence: Sapphire
Foods enjoys a global presence. Its operations are mostly active in
regions of Sri Lanka, Maldives, and India. So, even when business is
slower in one part of the world, the company continues to generate
earnings from the other regions. The same logic is also applicable to its
variety of restaurant chain outlets under its name.
- Robust financial
standing: Sapphire Foods has a robust
financial standing. The company’s financial profile is characterised by
substantial revenue growth, low working capital requirements, and
convenient capitalisation.
- Scalable business
model: The company follows a
scalable, pro-expansion business model.
Weaknesses
- Success depends
on brands’ popularity: KFC,
Pizza Hut, and Taco Bell are some of the most popular global food chains
that come under the umbrella of this company. While the popular brands
draw in the most revenue, it also makes this company over-dependent on the
success of the brands under its banner.
- Exposure to
project execution risk: Sapphire
Foods intends to grow its geographical presence. However, to increase its
store count, the company needs to have access to a suitable location.
Additionally, it needs timely access to capital to execute the same. Often
gaining access to these makes it challenging for Sapphire Foods to
undertake a new project and execute it as per plan.
Opportunities
- Growth and
expansion: With
enhanced earnings and better financial standing, Sapphire Foods could help
executive expansion plans effectively. The company could emerge successful
in adding restaurant chains in newer locations down the road.
- Inclusion of new
brand: By adding more international
restaurant brands under its umbrella, Sapphire Foods can expand its brand
value and channels of earnings. Also, by initiating ventures in other
countries, it could increase its market presence and customer base.
Threats
- Increased
competition: This
company is exposed to intense competition from organised and unorganised
players such as Burger King, Dominos, and McDonald’s. In such a set up
maintaining sustainable growth and increasing profit margin is immensely
challenging.
- Inherent industry
risk: A large share of the company's
revenue comes from KFC. However, its sales are often influenced by
external factors such as the supply of chicken or outbreaks of diseases
like bird flu. Also, recently with the outbreak of a pandemic, the food
and dining sector suffered heavily. As a result, the revenue-generating
capability of Sapphire Foods also suffered. This indicates that inherent
industry risks and uncontrollable situations make this company susceptible
to staggering returns.
