Sapphire Foods IPO GMP, Date, Price, Review 2024, and Other Full information

In this blog, we futher discuss about Sapphire Foods IPO GMP, Date, Price, Review 2024, and Other information.The Sapphire Foods IPO India Limited, which runs KFC and Pizza Hut restaurants, was very popular. On the last day of subscription, November 11, it was subscribed 6.62 times. The ₹2,073 crore IPO received bids for 63,945,000 shares, while only 9,663,468 shares were available.

Sapphire Foods India Ltd. is one of India’s largest restaurant operators. Established in 2015, the company acquired around 250 KFC and Pizza Hut stores in India and Sri Lanka. It currently owns over 200 KFC restaurants in India and the Maldives, and more than 230 Pizza Hut restaurants across India, Sri Lanka, and the Maldives. 

Sapphire Foods is a major franchisee of Yum! Brands Inc. in the region, operating over 400 KFC, Pizza Hut, and Taco Bell restaurants. Market observers say that Sapphire Foods shares are trading at a ₹70 premium in the grey market today. The company’s shares are expected to be listed on major stock exchanges, BSE and NSE, next week on November 22, 2021. The company plans to raise Rs 2,073 crore through this sale. The IPO involves selling 17,569,941 shares from current owners; Sapphire Foods won’t get any money from this sale. 

About Sapphire Foods :

Sapphire Foods India is the biggest franchisee of YUM Brands in India by revenue as of FY’20. It’s also Sri Lanka’s largest international fast food chain by revenue for FY’21 and number of restaurants as of March 31, 2021. As of that date, the company owned and ran 204 KFC outlets in India and the Maldives, 231 Pizza Hut outlets in India, Sri Lanka, and the Maldives, and 2 Taco Bell outlets in Sri Lanka. The company’s total restaurants in the region grew from 376 in 2019 to 437 in 2021.

The company manages its supply chain internally and partners with vendors for food, packaging, warehousing, and logistics. It operates warehouses in five Indian cities and has invested in restaurant technology. Sapphire Foods uses YUM Brands’ global online and digital solutions to improve customer service and operational efficiency. Its restaurants are located in high-traffic areas across India’s key cities, and it plans to expand into new cities.

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Sapphire Foods India, which runs KFC and Pizza Hut restaurants, started selling its shares to the public on Tuesday, November 9, 2021. They’re offering shares at a price between Rs 1,120 and Rs 1,180 each. The sale will continue until Thursday, November 11, 2021.

Sapphire Foods India is a big restaurant company that operates online and offline. It’s the biggest franchisee of Yum Brands in India and nearby countries. Big investors like Samara Capital, Goldman Sachs, CX Partners, and Edelweiss support Sapphire Foods.

Key Strengths:

– Largest franchise operator of YUM Brands in India and Sri Lanka’s top international fast food chain
– Focus on excellent customer service
– Strong quality control and operational expertise
– Scalable business model
– Experienced management with strong corporate governance

Sapphire Foods IPO date is set. It will start on November 9 and end on November 11, 2021. The company aims to raise ₹2,073 crores through the IPO by offering up to 17,569,941 equity shares priced at ₹10 each. The allocation for retail investors is 10%, while Qualified Institutional Buyers (QIBs) will get 75%, and High Net Worth Individuals (HNIs) 15%.

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Here are the important details:

– The company runs KFC and Pizza Hut stores.
– It’s the biggest franchisee of Yum! Brands Inc. in India, Sri Lanka, and the Maldives.
– QSR Management Trust will offer 850,000 shares.
– Sapphire Foods Mauritius Ltd will offer 5,569,000 shares.
– WWD Ruby Ltd will offer 4,846,000 shares.
– Amethyst will offer 3,962,000 shares.
– NAV (Net Asset Value): 84
– EPS (Earnings Per Share): -19
– RoNW (Return on Net Worth): -22%
– PE Ratio (Price-to-Earnings Ratio): N/A

Sapphire Foods IPO Details:

Why is the (GMP) important for an IPO?

The IPO Grey Market Premium (GMP) shows the difference between the IPO’s price and its unofficial trading price before it officially starts trading on stock exchanges. This trading happens in the grey market, which operates independently from official exchanges.

However, GMP doesn’t always predict how well the IPO will do when it starts trading. Factors like demand from big investors and overall market conditions also affect the share price. GMP just reflects how investors feel at that time. The actual share price will depend on things like how well the company does and the broader market.

The actual listing price of an IPO can be different from what the grey market suggests. Market conditions and how much people want to buy the company’s shares can change this. Sometimes IPOs with low grey market prices start high, and others with high grey market prices start lower. While the grey market gives a hint about potential gains, it’s best for investors to use it for information and not to decide whether to buy or sell.

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Sapphire Foods IPO Stock Price Chart:

The stock price chart for Sapphire Foods India Ltd. shows the closing price movements from late April 2024 to early July 2024. The closing price on July 2, 2024, is 1561, indicating a slight decline of 9.95 points or 0.63% for the day. The chart highlights fluctuations over the period, with the stock price dropping in May and then gradually recovering through June. The price peaked at around 1600 before settling back to 1561. This pattern suggests some volatility but overall growth from the lows observed in May. The highest price noted is 1581.90, and the lowest is 1154.25. This performance indicates a generally positive trend despite short-term declines.

Sapphire Foods Financial Report:

Sapphire Foods has shown significant financial performance over recent years. As of June 30, 2021, the company had total assets of ₹13,710.76 million, slightly higher than the ₹13,088.66 million in June 2020 and close to the ₹13,489.37 million in March 2021. Total revenue increased substantially to ₹3,139.25 million in June 2021 from ₹1,361.75 million in June 2020. For the fiscal year ending March 31, 2021, total revenue was ₹10,812.35 million, down from ₹13,517.36 million in March 2020 but higher than ₹12,062.82 million in March 2019. The company has faced consistent losses, with a profit after tax of ₹(264.03) million in June 2021, an improvement from ₹(751.73) million in June 2020 and ₹(998.97) million in March 2021.

Final Report:

The Sapphire Foods IPO has generated significant interest in the market, reflecting the company’s strong presence in the restaurant industry with well-known brands like KFC and Pizza Hut. Despite facing financial challenges in recent years, with consistent losses and fluctuations in revenue, the company’s assets have remained stable. The IPO aims to raise ₹2,073 crores, indicating confidence in future growth. The grey market premium (GMP) of ₹70 suggests positive investor sentiment ahead of the official listing on BSE and NSE. As one of the largest franchisees of Yum! Brands Inc. in the region, Sapphire Foods has the potential to leverage its extensive network and brand recognition to achieve sustained growth and profitability.

Disclaimer

Dear readers, the information provided in this article is only for educational purposes; data used in this blog post may change over time. Note that we are not any SEBI registered financial advisor and do not provide any financial advice. This post should not be considered any financial advice. Investing in stock assets may involve financial risks; please seek the advice of any certified financial advisor before investing.

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