Sapphire Foods makes good debut; gains 17% against issue price post listing

Sapphire Foods, fast service restaurant (QSR) company, made a wholesome stock market debut on the bourses on Thursday. The shares of the company that owns and operates Pizza Hut and KFC chain of shops listed at Rs 1,350, a 14 per cent premium against issue price of Rs 1,180 per share on the National Stock Exchange (NSE). On the BSE, the stock opened at Rs 1,311, an 11 per cent premium over its issue price.

Post listing, shares of Sapphire Foods moved larger to Rs 1,383.60 on the BSE and Rs 1,380 on the NSE. At 10:09 am, it was buying and selling 14 per cent larger at Rs 1,346 on each the exchanges. A mixed 3 million fairness shares had modified palms on the NSE and BSE until the time of writing of this report.

The Rs 2,073-crore preliminary public providing (IPO) of Sapphire Foods India had acquired good response from traders with the issue getting almost 7 occasions extra demand than the shares on supply. The certified institutional patrons (QIBs) portion garnered 7.5 occasions subscription, the excessive networth particular person (HNI) portion was subscribed 3.5 occasions and the retail quota garnered almost 8.7 occasions subscription.

Sapphire Foods is among the Yum model’s restaurant operators within the Indian subcontinent. It can also be Sri Lanka’s largest QSR chain as per FY21 revenues. The company operates 482 shops with 219 KFC & 188 Pizza Hut shops in India. It has one other 73 shops in Sri Lanka and two in Maldives. The company operates KFC & Pizza Hut manufacturers in India, Sri Lanka & Maldives and Taco Bell operations in Sri Lanka. It operates underneath a three-way franchisee association for Yum in India

“The company enjoys a strong relationship with Yum Brands of US, which enables it to use Yum’s system, system property and expertise in building and establishing brands and operating large-scale restaurants chains. The company is optimising its restaurant size to reduce the costs in form of operations costs as well as the capex incurred. This would improve the profitability & reduce the payback period of outlet as well,” ICICI Securities had stated in an IPO observe.

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