About Sapphire Foods IPO

Sapphire Foods is India’s leading restaurant operator. It was incorporated in 2009 as Samarjit Private Limited and was later renamed Sapphire Foods. In terms of earnings, in the fiscal year 2020, Sapphire Foods is the largest franchisee operator of YUM! Brands in the Indian subcontinent. This omnichannel restaurant operator enjoys a global presence and operates in countries such as India, Sri Lanka, and the Maldives. To further boost its brand image and expand its business, Sapphire Foods intends to float its shares in the stock exchanges.

Sapphire Foods IPO Objectives

- To avail the benefits of getting listed on stock exchanges.
- To create a public market for Sapphire shares.
- Brand promotion.

Sapphire Foods IPO - Details

Sapphire Foods initial public offer will be a pure offer for the sale of its equity shares by shareholders and promoters. As per DRHP, Sapphire Foods Mauritius Ltd. plans to disinvest 55.69 lakh equity shares, Amethyst will sell 39.62 lakh equity shares, and QSR Management Trust plans to offload 8.50 lakh equity shares. Additionally, WWD Ruby Ltd will disinvest 48.46 lakh equity shares, AAJV Investment Trust 80,169 shares, and 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.

Opening Date

Nov 9, 2021

Closing Date

Nov 11, 2021

Price Band

₹ 1120 to ₹ 1180

per equity share

Issue Size

₹ 2,073.25 Cr

Face Value

₹ 10

per equity share

Market Lot

12 shares

Opening Date

Nov 9, 2021

Closing Date

Nov 11, 2021

Price Band

₹ 1120 to ₹ 1180

per equity share

Issue Size

₹ 1120 to ₹ 1180

Face Value

₹ 10

per equity share

Market Lot

12 shares

Listing at NSE, BSE

Sapphire Foods IPO Important Dates

IPO Open Date Nov 9, 2021
IPO Close Date Nov 11, 2021
Basis Of Allotment Date Nov 16, 2021
Initiation Of Refunds Nov 17, 2021
Credit Of Shares To
Demat ACcount
Nov 18, 2021
IPO Listing Date Nov 22, 2021

Why Should You Invest in Sapphire Foods IPO?

Several key drivers make Sapphire Foods’ public offering a lucrative opportunity for investors. For instance, its strong financial standing and diversified global presence continue to add value to its moat. Additionally, the experienced management team coupled with the execution of smart business strategies offers Sapphire Foods an edge over its competitors. In general, Sapphire Foods is among the market leaders when it comes to the restaurant operator space. Investors willing to speculate on the growth and prospect of the food and restaurant business may consider Sapphire Foods a lucrative bet.

Financial highlights

Financial Year Total Assets in Millions Total Revenue in Millions Total Expenses in Millions Profit After Tax in Millions
March 2021 13,489.37 10,812.35 11,799.29 (998.97)
March 2020 13,806.64 13,517.36 14,183.28 (1,592.47)

How to apply for Sapphire Foods IPO?

You can apply for the Sapphire Foods IPO in these ways:

UPI
Link your bank account to a reliable UPI ID and register it with your Angel One account. Proceed to book Sapphire Foods IPO shares using the ID, confirm the payment on the UPI app, and block the amount for allotment.

Demat Account

1. If you are already a client of Angel One, apply directly for Sapphire Foods IPO, click here.
2. If you’re a new investor Open DEMAT Account for free with Angel One to begin your investment journey.

Sapphire Foods IPO - Noteworthy Highlights

Sapphire Foods aims to be the finest restaurant operator in the country, extending great value and experience to its customers. Here are other key highlights of Sapphire Foods:

● It operates 204 KFC outlets in India and Maldives.

● There are 231 Pizza Hut outlets in India, Maldives, and India.

● It operates 2 Taco Bells in Sri Lanka.

● Sapphire Foods enjoys a substantial market presence courtesy of the leading QSR brands under its umbrella.

Sapphire Foods IPO - SWOT Analysis

strengths

Strengths

  • Experienced promoters: The company’s promoters have years of experience in the industry and boast of a proficient team. Collectively, they help the company draw effective strategies and operational plans.
  • Brand presence: As discussed, Sapphire Foods enjoys a robust brand presence in the food and restaurant business. It hosts brand names such as KFC, Taco Bell, and Pizza Hut under its banner. This helps the company generate returns by leveraging the success and popularity of the restaurant chains under its name.
  • Geographically diversified presence: Sapphire Foods enjoys a global presence. Its operations are mostly active in regions of Sri Lanka, Maldives, and India. So, even when business is slower in one part of the world, the company continues to generate earnings from the other regions. The same logic is also applicable to its variety of restaurant chain outlets under its name.
  • Robust financial standing: Sapphire Foods has a robust financial standing. The company’s financial profile is characterised by substantial revenue growth, low working capital requirements, and convenient capitalisation.
  • Scalable business model: The company follows a scalable, pro-expansion business model.
Weaknesses

Weaknesses

  • Success depends on brands’ popularity: KFC, Pizza Hut, and Taco Bell are some of the most popular global food chains that come under the umbrella of this company. While the popular brands draw in the most revenue, it also makes this company over-dependent on the success of the brands under its banner.
  • Exposure to project execution risk: Sapphire Foods intends to grow its geographical presence. However, to increase its store count, the company needs to have access to a suitable location. Additionally, it needs timely access to capital to execute the same. Often gaining access to these makes it challenging for Sapphire Foods to undertake a new project and execute it as per plan.
Opportunities

Opportunities

  • Growth and expansion: With enhanced earnings and better financial standing, Sapphire Foods could help executive expansion plans effectively. The company could emerge successful in adding restaurant chains in newer locations down the road.
  • Inclusion of new brand: By adding more international restaurant brands under its umbrella, Sapphire Foods can expand its brand value and channels of earnings. Also, by initiating ventures in other countries, it could increase its market presence and customer base.
Threats

Threats

  • Increased competition: This company is exposed to intense competition from organised and unorganised players such as Burger King, Dominos, and McDonald’s. In such a set up maintaining sustainable growth and increasing profit margin is immensely challenging.
  • Inherent industry risk: A large share of the company's revenue comes from KFC. However, its sales are often influenced by external factors such as the supply of chicken or outbreaks of diseases like bird flu. Also, recently with the outbreak of a pandemic, the food and dining sector suffered heavily. As a result, the revenue-generating capability of Sapphire Foods also suffered. This indicates that inherent industry risks and uncontrollable situations make this company susceptible to staggering returns.
Strenghts Strengths
Weaknesses Weaknesses
Opportunities Opportunities
Threats Threats

Strengths

  • Experienced promoters: The company’s promoters have years of experience in the industry and boast of a proficient team. Collectively, they help the company draw effective strategies and operational plans.
  • Brand presence: As discussed, Sapphire Foods enjoys a robust brand presence in the food and restaurant business. It hosts brand names such as KFC, Taco Bell, and Pizza Hut under its banner. This helps the company generate returns by leveraging the success and popularity of the restaurant chains under its name.
  • Geographically diversified presence: Sapphire Foods enjoys a global presence. Its operations are mostly active in regions of Sri Lanka, Maldives, and India. So, even when business is slower in one part of the world, the company continues to generate earnings from the other regions. The same logic is also applicable to its variety of restaurant chain outlets under its name.
  • Robust financial standing: Sapphire Foods has a robust financial standing. The company’s financial profile is characterised by substantial revenue growth, low working capital requirements, and convenient capitalisation.
  • Scalable business model: The company follows a scalable, pro-expansion business model.

Weaknesses 

  • Success depends on brands’ popularity: KFC, Pizza Hut, and Taco Bell are some of the most popular global food chains that come under the umbrella of this company. While the popular brands draw in the most revenue, it also makes this company over-dependent on the success of the brands under its banner.
  • Exposure to project execution risk: Sapphire Foods intends to grow its geographical presence. However, to increase its store count, the company needs to have access to a suitable location. Additionally, it needs timely access to capital to execute the same. Often gaining access to these makes it challenging for Sapphire Foods to undertake a new project and execute it as per plan.

Opportunities 

  • Growth and expansion: With enhanced earnings and better financial standing, Sapphire Foods could help executive expansion plans effectively. The company could emerge successful in adding restaurant chains in newer locations down the road.
  • Inclusion of new brand: By adding more international restaurant brands under its umbrella, Sapphire Foods can expand its brand value and channels of earnings. Also, by initiating ventures in other countries, it could increase its market presence and customer base.

Threats 

  • Increased competition: This company is exposed to intense competition from organised and unorganised players such as Burger King, Dominos, and McDonald’s. In such a set up maintaining sustainable growth and increasing profit margin is immensely challenging.
  • Inherent industry risk: A large share of the company's revenue comes from KFC. However, its sales are often influenced by external factors such as the supply of chicken or outbreaks of diseases like bird flu. Also, recently with the outbreak of a pandemic, the food and dining sector suffered heavily. As a result, the revenue-generating capability of Sapphire Foods also suffered. This indicates that inherent industry risks and uncontrollable situations make this company susceptible to staggering returns.

Competitor Analysis: Market Peers

Sapphire Foods enjoys a powerful position in the market. Some of its most popular market peers include:

Market Peers  Market Capitalisation Growth (in %)
Nestle 17.90%
Britannia Ltd. 2.63%
Ruchi Soya 67.28%
Tasty Bite Eatables 69.41%
Vadilal Industries 36.62%
IB Infotech 73.45%
Hindustan Foods 129.46%
GRM Overseas 874.79%
Parag Milk Foods 32.29%

Sapphire Foods IPO FAQs

How can I apply for Sapphire Foods IPO through Angel One App?

Apply for Sapphire Foods IPO in these steps:
Step 1: Navigate to the 'Investment Opportunities' tab on the Angel One portal.
Step 2: Click on the option that reads as ‘IPOs and FPOs’.
Step 3: Enter required details.
Step 4: Enter details of NPCI approved UPI Handle.
Step 5: Click the ‘Invest’ option to place an order.

I want to apply for IPO. However, I am unable to do so through my UPI ID?

You can apply for Sapphire Foods IPO through a UPI ID that is approved by NPCI. Hence, if you can't seem to apply for this public offer, it could mean that your UPI handle does not feature on the approved list of NPCI for providing UPI service.

I don’t have a UPI ID. Can I still subscribe to Sapphire Foods IPO?

Those who don't have a UPI ID can create an ID in any of the Handles featured on the NPCI list. Alternatively, investors can apply for Sapphire Foods IPO through the Application Supported By Blocked Amount ASBA processor either physically or via a bank.

What are the steps to create a UPI ID?

Create a UPI ID with BHIM app in these simple steps:
Step 1: Download the BHIM app.
Step 2: Verify your mobile number.
Step 3: Enter the passcode for accessing the app.
Step 4: Select your bank from the given options.
Step 5: If you have multiple accounts, you can pick the one you wish to register with BHIM.
Step 6: Set your UPI PIN.
After covering these steps, check your UPI ID details from your profile section.

How can I find my UPI ID?

You can find your UPI ID in your UPI Handle’s profile. Click here to find out how to initiate the process and find your UPI ID easily.

I am unable to find the UPI Handle I use in Angel One's drop-down menu. How will I apply for IPO?

Note that the UPI Handles not approved by NPCI are not present in Angel One's drop-down menu. Alternatively, you can apply for Sapphire Foods IPO by using any UPI Handles present on the NPCI list.

When will I receive the UPI mandate request for Sapphire Foods IPO?

In general, UPI mandate request is shared on the app within 15-20 minutes after bidding for Sapphire Foods IPO. Often investors experience a delay in receiving the request from their bank.

How to approve UPI mandate requests?

Individuals need to approve their UPI mandate request on the app itself. Click here to find out how to carry out the approval process.

Can I apply for Sapphire Foods IPO multiple times?

In general, 1 application per PAN is recommended. If you apply for Sapphire Foods IPO with one PAN through multiple platforms, the application might get rejected.

What charges shall I pay when applying for Sapphire Foods IPO?

When applying for Sapphire Foods IPO via Angel One, you are not required to pay any charges.

Can an NRI apply for Sapphire Foods IPO through Angel One app?

NRIs cannot subscribe to Sapphire Foods IPO through Angel One portal. Regardless, they can apply for this IPO via the ASBA procedure with a banking institution.

How can I benefit if I apply for Sapphire Foods IPO at the cut-off price?

Cut-off price is essentially the price at which shares of an initial public offer get issued. This price is fixed during share allotment. In most cases, investors who bid at this price do so to increase their chances of securing an allotment.

Can investors apply for Sapphire Foods IPO through an account that isn’t linked with Angel One?

Investors can apply for Sapphire Foods IPO shares through a bank account that is not linked with Angel One. Investors can use any of their bank accounts for subscribing to this IPO.

Can I apply for Sapphire Foods IPO using my current account?

Most banks process IPO applications made through a savings account. They are relatively less keen on processing IPO applications made via a current account. However, one should check with their bank first to confirm the same.

Can an investor subscribe to Sapphire Foods IPO via a HUF’s account?

Investors can apply for Sapphire Foods IPO with a HUF’s account via physical ASBA procedure. Notably, one cannot apply for IPO via Angel One using the Angel One portal.

Is it allowed to apply for Sapphire Foods IPO through a minor account?

One can apply for Sapphire Foods IPO using the ASBA procedure with his/her bank. However, Angel One does not permit minors to apply.

I subscribed to Sapphire Foods IPO. However, my account was not debit. Why is that so?

Banks block amount only after one investor has applied for an initial public offer. Usually, allotment money gets debited after share allotment. If shares are not allotted, the share amount is unblocked either on or before the expiry date of the UPI mandate.

Can I modify my bid in Sapphire Foods IPO?

You can modify IPO lot size and UPI ID in Sapphire IPO bid, even after placing an order. If you decide to modify your bid after approving the UPI mandate request, both the original IPO amount and the modified IPO amount will be blocked. Subsequently, you will receive another UPI mandate request for the newly modified bid. If you did not approve the first UPI mandate request, then the allotment amount will not be blocked for this bid.

Can I withdraw/cancel/delete Sapphire Foods IPO application?

You can withdraw/delete/cancel Sapphire Foods IPO application in these steps:
Step 1: Go to ‘Investment Opportunities’ section on our Angel One app.
Step 2: Select ‘IPOs and FPOs’ option.
Step 3: Click ‘Order Book’ button.
Step 4: Select the order you want to cancel.
Step 5: Click on ‘Details’.  

How to check Sapphire Foods IPO application status?

Check Sapphire Foods IPO status in these steps:
Step 1: Select 'Investment Opportunities’.
Step 2: Click on the ‘IPOs & FPOs’ option.
Step 3: Select the 'Order Book's option.
Once these steps are covered, the application status of your IPO application will be shared.

What reasons can prompt rejection of Sapphire Foods IPO application?

Your Sapphire Foods IPO application can get rejected because of these reasons:
● Using the wrong UPI PIN or ID when approving the mandate request.
● Bank A/c, UPI ID or Demat A/c was not mapped to PAN.

How to check my refund status in case my Sapphire Foods IPO application gets rejected?

When an individual applies for an initial public offer, the concerned bank blocks/holds the allotment money. Hence, funds will be unblocked/released either on or before the expiry date of the UPI mandate. However, if the allotment money is not released after the mandate expiry date, it is advisable to contact the bank to acquire more details.

Where can I check IPO allotment status?

Check your IPO allotment status in these steps:
Step 1: Navigate to ‘Investment Opportunities’ option.
Step 2: Select ‘IPOs & FPOs’ button.
Step 3: Click on the ‘Order Book’.
Once these steps are covered, the status of the application will appear on the screen.

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