Sapphire Foods India Limited IPO Subscription Status Day 3 – Overall bidding at 6.62 times, retail portion booked 8.7 times

The initial public offer (IPO) of Sapphire Foods India oversubscribed 6.62 times on the final day of bidding till 5:00 pm. The Rs 2,073-crore IPO received bids for 6,39,45,000 shares against 96,63,468 shares on offer, according to the data available on BSE. 

The retail investors queued most to subscribe for the IPO by 8.7 times, followed by qualified institutional buyers by 7.5 times and non-institutional investors quota was subscribed 3.46 times on the last day of the initial share-sale.

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The three-day initial public offer (IPO) of KFC, Pizza Hut operator's Sapphire Foods India Limited opened for public subscription on November 9, 2021, closed on November 11, 2021. The company had fixed price band of Rs 1,120-1,180 per equity share for this offer. The initial public offering is expected to raise Rs 2,073 crore.

The IPO will be entirely an offer for sale (OFS) of 1,75,69,941 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.

The company had 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.

Earlier, Zee Business Managing Editor Anil Singhvi had recommended to apply for this issue with long-term vision.  

"The company has strong brands like KFC and Pizza Hut under its belt. Besides, impressive track record, strong growth potential, profitable at operational level and reasonable valuations would work for this IPO, said Anil Singhvi," he had said while recommending the issue

Sapphire Foods, an omni-channel restaurant operator and the largest franchisee of Yum Brands in the Indian sub-continent, is backed by marquee investors such as Samara Capital, Goldman Sachs, CX Partners and Edelweiss.