Sapphire Foods India Ltd that operates KFC, Pizza Hut and Taco Bell outlets has raised Rs 933 crore from anchor investors ahead of its IPO. The much awaited IPO will open for public subscription on Nov 9 and concludes on November 11. Here are top things to know before you take a bite into this:
Allocating the equity shares: As per a circular uploaded on BSE, Sapphire Foods has decided to allocate a total of 79,06,473 equity shares to 53 anchor investors at Rs 1,180 apiece, aggregating the transaction size to Rs 932.96 crore.
A mix set of investors: Government of Singapore, Monetary Authority of Singapore, Fidelity Funds, Abu Dhabi Investment Authority, Morgan Stanley Asia (Singapore) Pte, ICICI Prudential Life Insurance Company, Bajaj Allianz Life Insurance Company and Sundaram Mutual Fund (MF) are among the anchor investors.
Offer of sale: The initial public offering (IPO) will be entirely an offer of sale (OFS) of 17,569,941 equity shares by promoters and existing shareholders. As a part of the OFS, QSR Management Trust will sell 8.50 lakh shares, Sapphire Foods Mauritius Ltd will offload 55.69 lakh shares, WWD Ruby Ltd will divest 48.46 lakh shares and Amethyst will offer 39.62 lakh shares. In addition, AAJV Investment Trust will sell 80,169 shares, Edelweiss Crossover Opportunities Fund will offload 16.15 lakh shares and Edelweiss Crossover Opportunities Fund-Series II will divest 6.46 lakh shares.
Price band: The issue, with a price band of Rs 1,120-1,180 a share will open for public subscription on Nov 9 and concludes on November 11. At the upper end of the price band, the initial public offering is expected to fetch Rs 2,073 crore.
Reservation for QIBs: KFC, Pizza Hut franchisee said that up to 75 per cent of the shares has been reserved for qualified institutional buyers (QIBs), 15 per cent for non-institutional buyers and the remaining 10 per cent for retail investors.
Largest franchisee of KFC, Pizza Hut: An omni-channel restaurant operator and the largest franchisee of Yum Brands in the Indian sub-continent, Sapphire Foods is backed by marquee investors such as Samara Capital, Goldman Sachs, CX Partners and Edelweiss.
As of March 31, 2021, Sapphire Foods owned and operated 204 KFC restaurants in India and the Maldives, 231 Pizza Hut restaurants in India, Sri Lanka and the Maldives, and two Taco Bell restaurants in Sri Lanka.
JM Financial, BofA Securities, ICICI Securities and IIFL Securities are the lead managers to the company's public issue. The equity shares of the company will be listed on BSE and NSE.