Sapphire Foods India is the largest YUM-type retailer operating on the Indian subcontinent based on FY’20. It is also the largest QSR international series in Sri Lanka in terms of FY ‘2021 revenue and the number of restaurants used since March 31, 2021. As of 31 March 2021, the company has owned and operated KFC restaurants in -204 in India and the Maldives. , 231 Pizza Hut restaurants in India, Sri Lanka and the Maldives, and 2 Taco Bell restaurants in Sri Lanka. The total number of company restaurants in the sub-region has grown from 376 in 2019 to 437 in 2021.
The company operates an in-house supply chain and works with retailer partners on food ingredients, packaging, storage, and supplies. The company operates warehouses in all 5 Indian cities and invests in the development of technological solutions in restaurants. The company uses YUM product and digital channel solutions for YUM product to improve customer experience and achieve efficiency and financial control. The company uses its restaurants in high-traffic and high-rise areas in major cities and towns across India and develops new restaurants in new cities as part of its growth strategy.
Competitive Strengths
- One of India’s largest restaurant franchisee operators and Sri Lanka’s largest international QSR chain
- YUM’s largest franchise operator in the Indian subcontinent in terms of revenue
- Focus on delivering excellent customer experience
- Quality control and operational excellence
- Scalable business model
- Experienced management team with robust corporate governance practices.
Sapphire Foods IPO Review
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The business model of the company is simply brilliant & Management is fantastic. It will outperform Devyani International for sure in long term.
Company Promoters
- Sapphire Foods Mauritius Limited
- QSR Management Trust
Company Financials
| Particulars | For the year/period ended (₹ in Millions) | ||
|---|---|---|---|
| 31-Mar-21 | 31-Mar-20 | 31-Mar-19 | |
| Total Assets | 13,489.37 | 13,806.64 | 15,674.72 |
| Total Revenue | 10,812.35 | 13,517.36 | 12,062.82 |
| Profit After Tax | (998.97) | (1,592.47) | (694.04) |
Objects Of The Issue
- Carry out the offer for sale of up to 17,569,941 equity shares by the selling shareholders,
- Achieve the benefits of listing the equity shares on the stock exchanges, and
- Enhancement of company’ s brand name amongst existing and potential customers and creation of a public market for equity shares in India.
Sapphire Foods Peer Comparison
| S. No. | Face value | Company Name | PE |
| 1 | 2 | Jubilant Foodworks Limited | 211.73 |
| 2 | 2 | Westlife Development Limited | N/A |
| 3 | 10 | Burger King India Limited | N/A |
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 – Details
| IPO Opening Date | 09 November 2021 |
| IPO Closing Date | 11 November 2021 |
| Issue Type | Book Built Issue IPO |
| Issue Size | 2073.25 Crore |
| Face Value | ₹10 per equity share |
| IPO Price | [1120] To [1180] Per Equity Share |
| Market Lot | 12 Shares ( 1 Lot ) |
| Min Order Quantity | 12 Shares |
| Listing At | BSE, NSE |
| Register | LinkIntime India Private Ltd |
Sapphire Foods IPO – Date Schedule
| IPO Open Date | 09 November 2021 |
| IPO Close Date | 11 November 2021 |
| Basis of Allotment Date | 16 November 2021 |
| Initiation of Refunds | 17 November 2021 |
| Credit of Shares to Demat Account | 18 November 2021 |
| IPO Listing Date | 22 November 2021 |
Sapphire Foods IPO – Lots Size & Price
| Application | Lots | Shares | Amount ( Cut-Off) |
| Minimum | 1 | 12 | 14,160 |
| Maximum | 14 | 168 | 1,98,240 |
Promoter Holding
| Pre Issue Share Holding | 60.08% |
| Post Issue Share Holding | 49.97% |
Sapphire Foods IPO Prospectus
Company Contact Information
| Sapphire Foods India Limited 702, Prism Tower, A Wing, Mindspace, Link Road, Goregaon (West), Mumbai, 400 062, Maharashtra, India. Phone: +91 22 6752 2343 Email: investor@sapphirefoods.in Website: https://www.sapphirefoods.in/ |
Sapphire Foods IPO Registrar
| Link Intime India Private Limited C 101, 247 Park, L. B. S. Marg Vikhroli (West) Mumbai 400 083 Tel: +91 22 4918 6200 E-mail: sapphire.ipo@linkintime.co.in Website: www.linkintime.co.in |
Sapphire Foods IPO Lead Manager(s)
| 1. JM Financial Limited 2. BofA Securities India Limited 3. ICICI Securities Limited 4. IIFL Securities Limited |
Sapphire Foods IPO FAQs
| When Sapphire Foods IPO will open? The Sapphire Foods IPO dates are 09 November 2021 To 11 November 2021. |
| What is the lot size of Sapphire Foods IPO? Sapphire Foods IPO lot size and the minimum order quantity is [12 Shares]. |
| How to apply for Sapphire Foods IPO? You can apply in Sapphire Foods IPO online using either UPI or ASBA as payment method. ASBA IPO application is available in the net banking of your bank account. UPI IPO application is offered by brokers who don’t offer banking services. |
| When is Sapphire Foods IPO listing date? The Sapphire Foods IPO listing date is announced. The date of Sapphire Foods IPO listing is [22 November 2021]. |
