Promoters Sapphire Foods Mauritius, and QSR Management Trust hold 45.52 percent and 5.83 percent shareholding, respectively, in the company.
KFC and Pizza Hut operator Sapphire Foods will open its initial public offering for subscription on November 9. This would be the second IPO to open in that week, after Paytm, which will open on November 8.
The public offer with 1,75,69,941 equity shares is entirely an offer for sale (OFS) issue by promoters and investors.
Promoters – QSR Management Trust will sell 8.5 lakh equity shares, and Sapphire Foods Mauritius will offload 55.69 lakh equity shares through offer for sale. Further, WWD Ruby will sell 48.46 lakh equity shares, Amethyst 39.61 lakh shares, and AAJV Investment Trust will offload 80,169 equity shares.
Other investors, Edelweiss Crossover Opportunities Fund and Edelweiss Crossover Opportunities Fund – Series II will sell 16.15 lakh equity shares and 6.46 lakh equity shares, respectively, via OFS.
The company will not receive any money from this issue as all the funds, excluding issue expenses, will go to shareholders that are selling their stakes.
The issue will close on November 11. The price band for the offer and lot size will be disclosed by the company in coming days.
Sapphire is one of YUM’s franchisee operators in the Indian subcontinent with revenue from operations of Rs 1,019.62 crore for FY21. As of June 2021, the company owned and operated 209 KFC restaurants in India and the Maldives, 239 Pizza Hut restaurants in India, Sri Lanka and the Maldives, and two Taco Bell restaurants in Sri Lanka.
The company recorded a loss of Rs 99.89 crore in the financial year FY21 against loss of Rs 159.25 crore in previous year. Revenue from operations in the same period declined to Rs 1,019.62 crore from Rs 1,340.41 crore due to Covid-19 crisis.
The loss for the quarter ended June 2021 was at Rs 26.4 crore, much lower compared to loss of Rs 75.17 crore reported in corresponding period last fiscal. Revenue in the same period also increased significantly to Rs 303.05 crore from Rs 110.99 crore YoY, with easing Covid concerns and re-opening of economic activities.
Promoters – Sapphire Foods Mauritius, and QSR Management Trust – hold 45.52 percent and 5.83 percent shareholding, respectively, in the company.
Among investors, WWD Ruby owns 18.38 percent stake in the company, Arinjaya (Mauritius) 8.01 percent, Edelweiss 9.44 percent and Amethyst has 6.53 percent shareholding.JM Financial, BofA Securities India, ICICI Securities and IIFL Securities are the book running lead managers to the issue.
