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Sapphire Foods, KFC Operator IPO GMP, Financials, Risks, Last Day to Buy, Should You?

Sapphire Foods, which operates KFC and Pizza Hut restaurants, initial public offering (IPO) has received muted response from the investors as of now.

Sapphire Foods IPO was subscribed 1.5 times so far on the final day of the bidding. Sapphire Foods IPO received bids for 1.18 crore equity shares against an IPO size of 96.63 lakh equity shares till now, according to the data available at NSE. The portion reserved for them has been booked 6.16 times. Qualified institutional investors have, so far, bid for only 3 per cent of their quota of shares. The non-institutional investors bought 34 per cent shares of their portion. Sapphire Foods IPO was booked 1.07 times on the second day of subscription, largely by the support of the retail investors.

Sapphire Foods IPO Price, Valuation

Sapphire Foods aimed to raise Rs 2,073 crore through IPO. The maiden issue was entire an offer-for-sale by promoters and investors. Sapphire Foods IPO price band was fixed at Rs 1,120-1,180 a share. The company raised Rs 933 crore from the anchor investors, at the upper price band. On Sapphire Foods IPO valuation, Angel One said, “In terms of valuations, the post-issue FY21 EV/Sales works out 7.4x to (at the upper end of the issue price band), which is low compared to its peers Devyani International (FY21 EV/Sales -16.3x).”

Sapphire Foods IPO Key Strengths

Started in 2009, Sapphire Foods India Limited was the largest franchise operator of YUM Brand in the Indian subcontinent. Sapphire Foods have the non-exclusive rights to operate restaurants under three leading brands — KFC, Pizza Hut and Taco Bell brands in the territories. All of them are well-recognised fast food brands not only in India but across the globe. This portfolio can make Sapphire Foods attractive for investors. The scalable business model and experienced board and senior management team are some of the key stregths of Sapphire Foods.

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