Sapphire Foods IPO Review – Details, Date, Price, GMP

Sapphire Foods India Ltd will be issuing its initial public offering on 9 November 2021. If you are an IPO investor, then this news can be great for you. Because Sapphire is the biggest franchise operator of YUM across India and its subcontinent. It mainly operates the outlets of KFC and Pizza Huts at the mass level. And now, this significant company is not going to raise Rs2073 crore by issuing an IPO.

And as per the latest report, it will keep the pricing of its share from Rs1120 to Rs1180 for one share. It will be issuing about 1.75 crore shares in the NSE and BSE for a subscription. However, the company will not be getting the funds from the subscriptions of a new issue. Because existing promoters and shareholders are offering these shares for sale.

Thus, if you are interested in purchasing Sapphire Foods IPO, then read this article. Because here we will give complete information about company background and more.

Sapphire Foods IPO Review - Details, Date, Price, GMP

Sapphire Foods IPO Details

Name Of Promoter/Existing ShareholderNumber Of Shares
Sapphire Foods Mauritius Ltd55,69,000
QSR Management Trust8,50,000
Amethyst39,62,000
WWD Ruby Ltd48, 46,000

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About Sapphire Foods Ltd

Sapphire Foods India Ltd was founded in 2015. It has acquired about 250 Pizza Hut and KFC outlets in India and Sri Lanka. But now, it has taken over about 200 KFC outlets across India and Maldives. Also, it now has 230 restaurants of Pizza Hut across Sri Lanka, Maldives, and India. Therefore, it is also considered one of the largest YUM Franchisee holders. 

And this company works with several vendors for the successful operation of warehousing, packaging, food ingredients, and logistics. In the top five cities of India, it has invested in building and warehouses so it can meet all the requirements of its business. It also invests in technology so the customers can get an enhanced experience. Moreover, the company runs its outlets mostly in metropolitan cities and other high-traffic cities of India. 

Financial Details of Sapphire Foods India Ltd 

YearsTotal Assets (In Crore)Sales Or Revenue (In Crore)Profit/Loss  (In Crore)
March 20211348.941081.24-90.90
March 20201380.661354.74-159.25
March 2019157.471206.28-69.40

About Sapphire IPO

Sapphire IPO will be soon launched in the National Stock Exchange and Bombay Stock Exchange for the subscription. The company has its headquarter in Mumbai; it submitted its DRHP or draft red herring prospectus to SEBI to issue its IPO. Here the critical thing you need to note is that the promoters and existing shareholders sell their holding shares. So they can raise significant funds for the company. As per the DRHP, Sapphire will issue 1,75,69,941 shares in the exchange. And once the SEBI approves the same, then investors can easily subscribe to these IPOs.  

Details of Sapphire IPO

ParticularDetails
Sapphire IPO starting date9 November 2021
Sapphire IPO closing date11 November 2021
Sapphire IPO allotment date16 November 2021
Refund payment date17 November 2021
Share credit to Dematseverely account18 November 2021
Listing date of IPO22 November 2021
Type of IssueIPO (book built issue)
Face ValueRs10 per share
Per IPO share PriceRs1120-Rs1180
Minimum Market Lot1 of 12 shares
Maximum Market Lot14 of 168 shares
Minimum IPO Lot PriceRs13,440-Rs14,160
Maximum IPO Lot PriceRs1,88,160-Rs1,98,240
IPO available for Fresh IssueRs2073.25 Crore
IPO available for saleRs2073.25 Crore
Size of Issue1,75,69,941
OFS or offer for sale1,75,69,941
ExchangeNSE and BSE both

Reasons to Invest in Sapphire IPO

If you are an investor in the share market, you can consider investing in Sapphire IPO for the following reasons. 

  • The company is already working at scale and works closely in India and its subcontinent.
  • Its critical skills are to keep the offering cost-effective, improve customer experience and leverage omnichannel strategy. 
  • It is capturing outlets of Pizza Hut, KFC, and others at a fast pace.
  • Sapphire has an excellent infrastructure in the top five cities to run its operational activities.
  • The company has the potential to provide benefits in the long run.  

Challenges of Investing in Sapphire IPO

Now let’s discuss some key challenges you might face when you invest in Sapphire IPO.

  • The company was severely affected by The COVID-19 pandemic, the company impacted by the COVID-19 pandemic, which is still battling.
  • For the last three consecutive years, the company has faced loss, as we discussed above. 
  • There can be chances that the company would not be able to market itself effectively.
  • Sapphire India Ltd’s success depends on the success of Pizza Hut, KFC, and Taco Bell.  

Why is Sapphire Foods India Ltd Issuing Its IPO?

Sapphire Foods Ltd is issuing its IPO on the stock exchange for the below-mentioned reasons. 

  • Its promoters and existing shareholders want to sell about 1,75,69,941 shares at a face value of Rs10 each in the share market.  
  • Also, the company wants to get the benefits of listing shares in the stock exchange.  
  • Then another good reason for issuing Sapphire IPO is to build the brand’s name in the market. So, it can build a public market for its equity shares and raise some massive funds.  
  • They also want to pay for the outstanding on the company so it can make operational activities more agile.  
  • Moreover, the brand would also be looking to improve its technology and other infrastructure. So, the customers can get an excellent experience with its services.

FAQs

What is Sapphire Foods IPO Date?

The launch date of Sapphire IPO is 9 November 2021, and that day investors can subscribe to its shares.  

What is Sapphire IPO Share Price?

The per-share price of Sapphire IPO is from Rs1020 to Rs1180 for the investors in the stock exchange. Hence, you need to pay up to Rs1180 per share to subscribe to its shares in the lot.  

What are The Minimum and Maximum Lots for Sapphire IPO?

The minimum lot size of Sapphire IPO is 12 shares in one lot that can cost up to Rs14,160. And the maximum lot size is 14 lots or 168 shares that can cost up to Rs1,98,240.  

Conclusion

So, Sapphire is going to launch its IPO or initial public offering on 9 November 2021. and you can subscribe to its shares in NSE and BSE as per the required lot size. Hence, if you want to make some long-term investment for about four to five years, you can consider investing in Sapphire IPO. Because the company has the potential to ensure significant profit in the long term.

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