Sapphire Foods India
Mainboard₹2,073 Cr issue
+11.10%
Listing gain over issue price
Issue size
₹2,073 Cr
1 lot at cut-off
₹14,160
Lot size
12shares
Open
09 Nov 2021
Close
11 Nov 2021
Allotment
16 Nov 2021
Listing
18 Nov 2021
Listing performance
Issue price
₹1,180
Listed at
₹1,311
Listing-day close
₹1,216.05
Latest price
₹195.51
Close on 23 Oct 2026
Listing gain
+11.10%
Return since issue
-17.16%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 09 Nov 2021 – 11 Nov 2021
- Listing date
- 18 Nov 2021
- Face value
- ₹10 per share
- Issue price
- ₹1,180 per share
- Lot size
- 12 shares
- Total issue size
- ₹2,073 Cr
- Market cap at offer price
- ₹7,498 Cr
- Promoter holding
- 61.36% → 51.26% pre-issue → post-issue
- ISIN
- INE806T01020
- Registrar
- MUFG Intime India Pvt.Ltd.
- Lead managers
- BOFA Securities India Ltd.
- Registered office
- 702, Prism Tower, A Wing, Mindspace, Link Road, Goregaon (West), Maharashtra
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 79,06,473 | — | — |
| Market maker | 0 | — | — |
Application size
Minimum 12 shares per lot, in multiples, at ₹1,180
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 12 | ₹14,160 |
| Retail (max) | 14 | 168 | ₹1,98,240 |
| S-HNI (min) | 15 | 180 | ₹2,12,400 |
| S-HNI (max) | 70 | 840 | ₹9,91,200 |
| B-HNI (min) | 71 | 852 | ₹10,05,360 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Shares allocated
79,06,473
Anchor portion
₹933 Cr
at ₹1,180 per share
Valuation and performance
Valuation at offer price
₹1,180 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| Market cap | — | ₹7,498 Cr |
About Sapphire Foods India
Sapphire Foods India Limited operates as a franchisee of Yum Restaurants (India) Private Limited, developing and operating KFC, Pizza Hut and Taco Bell branded quick-service restaurants across the Indian subcontinent, Sri Lanka and Maldives. The company was incorporated on November 10, 2009 as Samarjit Advisors Private Limited and subsequently renamed. As of March 31, 2021, the company operated 437 restaurants across its territories. For the financial year 2021, the company reported revenue from operations of ₹10,196.19 million, having declined from ₹13,404.12 million in FY2020 primarily due to COVID-19 impacts. The company earns revenue from the sale of food and beverages through its franchise restaurants, supplemented by licensing agreements with YUM for technology and operational systems.
Company Analysis
from RHPSapphire Foods India Limited is a franchisee operator of KFC, Pizza Hut and Taco Bell restaurants across India, Sri Lanka and Maldives, generating revenue from food service operations in the quick-service restaurant (QSR) chain segment.
Sapphire Foods India Limited operates as a franchisee of Yum Restaurants (India) Private Limited, developing and operating KFC, Pizza Hut and Taco Bell branded quick-service restaurants across the Indian subcontinent, Sri Lanka and Maldives. The company was incorporated on November 10, 2009 as Samarjit Advisors Private Limited and subsequently renamed. As of March 31, 2021, the company operated 437 restaurants across its territories. For the financial year 2021, the company reported revenue from operations of ₹10,196.19 million, having declined from ₹13,404.12 million in FY2020 primarily due to COVID-19 impacts. The company earns revenue from the sale of food and beverages through its franchise restaurants, supplemented by licensing agreements with YUM for technology and operational systems.
quick-service restaurants (QSR)food servicesorganized food services marketcasual dining
Objects of the Issue
- carry out the Offer for Sale of 17,569,941 Equity Shares by the Selling Shareholders p.21
- achieve the benefits of listing the Equity Shares on the Stock Exchanges p.21
- enhancement of our Company's brand name amongst our existing and potential customers and creation of a public market for our Equity Shares in India p.21
- No proceeds for the Company - Offer for Sale only p.90
Issue Structure
- Total Issue
- 17,569,941 Equity Shares, aggregating to ₹ 20,732.53 million
- Offer for Sale
- 17,569,941 Equity Shares aggregating to ₹ 20,732.53 million
- Price Band
- ₹ 1,120 per Equity Share (Floor Price) to ₹ 1,180 per Equity Share (Cap Price)
- Lot Size
- 12 Equity Shares and in multiples of 12 Equity Shares thereafter
- Face Value
- ₹ 10 per Equity Share
Business Model
The company operates under franchisee arrangements with Yum Restaurants (India) Private Limited, operating KFC, Pizza Hut and Taco Bell branded restaurants on a non-exclusive basis in designated territories. Revenue is generated from restaurant operations through food and beverage sales. The company pays YUM royalty fees of 6.0% to 6.3% of net sales and is required to spend 5.0% to 6.0% of net sales on marketing and advertising. The company also receives incentives from YUM in the form of waivers of initial fees and marketing expenses when meeting development targets for new restaurant openings.
Business Segments
Operation of KFC branded quick-service restaurants in India, Sri Lanka and Maldives
Operation of Pizza Hut branded quick-service restaurants in India, Sri Lanka and Maldives
Operation of Taco Bell branded quick-service restaurants in Sri Lanka
Operation of KFC brand quick-service restaurants in India and Maldives
Operation of Pizza Hut brand quick-service restaurants in India, Sri Lanka and Maldives
Operation of Taco Bell brand quick-service restaurants in Sri Lanka
Quick Service Restaurant serving chicken and other menu items; as of June 30, 2021, company owned and operated 209 KFC restaurants in India and the Maldives
Quick Service Restaurant serving pizza and other menu items; as of June 30, 2021, company owned and operated 239 Pizza Hut restaurants in India, Sri Lanka and the Maldives
Quick Service Restaurant serving Mexican cuisine; as of June 30, 2021, company owned and operated 2 Taco Bell restaurants in Sri Lanka
Operates KFC restaurants serving chicken products including chicken on the bone, boneless chicken, burgers, rice dishes, wraps, beverages and desserts in India and the Maldives
Operates Pizza Hut restaurants serving pizzas, pasta, appetizers, beverages and desserts in India and across Sri Lanka and the Maldives
Operates Pizza Hut and Taco Bell restaurants in Sri Lanka, the largest international QSR chain in Sri Lanka by revenue and number of restaurants
Operates KFC and Pizza Hut restaurants in the Maldives
Operation of KFC branded quick service restaurants
Operation of Pizza Hut branded quick service restaurants
Operation of Taco Bell branded quick service restaurants
Quick service restaurant operations under KFC and Pizza Hut brand franchises
KFC restaurant operations in India offering chicken-based food products
Pizza Hut restaurant operations in India offering pizza-based food products
Restaurant operations in Sri Lanka including KFC and Pizza Hut brands
SWOT Analysis
Strengths
- • YUM's leading franchisee operator in Indian subcontinent with significant market presence(p.21)
- • Dominant position in Sri Lankan QSR market(p.21)
- • Operating in fastest-growing QSR sub-segment with strong CAGR(p.21)
- • Established multi-brand portfolio with KFC and Pizza Hut market share(p.21)
- • Strong development agreements providing growth incentives(p.36)
- • One of YUM's leading franchisee operators in Indian subcontinent(p.180)
- • Dominant market position in Sri Lanka's organized QSR sector(p.180)
- • Access to YUM's established global system and brand property(p.180)
- • Significant number of restaurants across multiple brands and geographies(p.180)
- • Strong promoter contribution and institutional backing(p.107)
- • Leading QSR brands with substantial market presence and scale in India and Sri Lanka(p.183)
- • Strong global brand affiliation providing access to YUM's expertise and best practices(p.184)
- • Omni-channel distribution model with strong digital and delivery capabilities(p.183)
- • Proven operational excellence with multiple layers of quality control and food safety systems(p.184)
- • Scalable restaurant model with optimized unit economics and reduced capital requirements(p.186)
- • Experienced management team with 20+ years average industry experience(p.187)
- • In-house supply chain function with rigorous vendor approval and quality assurance(p.197)
- • Multiple revenue streams and proven cost resilience during COVID-19 disruption(p.185)
- • Established multi-brand QSR franchise portfolio(p.270)
- • Significant scale of operations across geographies(p.270)
- • Experienced management team with multi-brand expertise(p.242)
- • Strong board governance with independent directors and specialized committees(p.235)
- • Market leadership position in Sri Lanka(p.348)
- • Leading brand portfolio and product differentiation(p.349)
- • Strong omni-channel distribution capability(p.349)
- • Significant delivery channel penetration(p.350)
- • Strong gross margins demonstrating operational efficiency(p.350)
Weaknesses
- • Consistent history of losses and negative profitability(p.31)
- • Negative cash flows from operations in multiple periods(p.36)
- • Significant accumulated debt burden(p.37)
- • Material outstanding litigation and statutory compliance delays(p.42)
- • Delays in statutory payments and audit qualifications(p.41)
- • Heavy dependence on single franchisor (YUM) for core operations(p.36)
- • Limited liquidity position with weak working capital(p.50)
- • No proceeds from IPO to strengthen balance sheet(p.37)
- • Foreign exchange exposure on YUM fees and capital imports(p.51)
- • Dependence on YUM brand reputation and global operations(p.51)
- • Missing historical corporate and secretarial records(p.55)
- • Non-compliance with downstream investment filing requirements(p.55)
- • Missing statutory auditor compliance certificates for foreign investments(p.55)
- • Significant leasing obligations and rental cost escalation risk(p.56)
- • High employee attrition and labor cost pressures(p.61)
- • Substantial outstanding litigation including food safety violations(p.52)
- • Missing licenses and permits for restaurant operations(p.54)
- • Financing arrangements impose restrictive covenants and default risks(p.57)
- • Significant accumulated losses and negative profitability(p.137)
- • Negative return on net worth for equity shareholders(p.138)
- • High debt burden relative to equity(p.171)
- • Weak liquidity position with current ratio below 1.0(p.171)
- • Significant revenue decline year-over-year(p.170)
- • Heavy dependence on YUM franchise agreements with restrictive terms and termination risks(p.192)
- • Mandatory royalty obligations and marketing spend requirements reducing profitability(p.192)
- • Significant history of permanent restaurant closures affecting unit economics(p.195)
- • Concentration of restaurants in top cities creating geographic revenue concentration risk(p.196)
- • Lease-dependent business model with all properties rented, creating operational inflexibility(p.201)
- • Recent significant losses and negative adjusted EBITDA indicating profitability challenges(p.182)
- • Persistent operating losses across all reported periods(p.267)
- • Significant accumulated losses and negative retained earnings(p.268)
- • High leverage with substantial lease obligations(p.266)
- • No formal dividend policy and no dividends declared(p.258)
- • High concentration among promoter shareholders(p.246)
- • Non-compliance with certain SEBI Listing Regulations(p.235)
- • Significant accumulated losses and negative retained earnings reducing financial flexibility(p.308)
- • High leverage and substantial lease liabilities constraining capital structure(p.313)
- • Goodwill impairment of INR 917.76 million recorded for Pizza Hut CGU in FY2020 due to COVID-19 impact(p.317)
- • Continuous operating losses with restated loss before tax of INR 986.94 million in FY2021(p.294)
- • High employee attrition particularly in store operations requiring continuous recruitment and training(p.328)
- • Substantial accumulated losses impacting net worth(p.349)
- • Negative return on net worth(p.342)
- • High lease liabilities creating significant fixed obligations(p.335)
- • Material dependence on YUM royalty payments and brand restrictions(p.354)
- • Pizza Hut brand impairment indicating competitive weakness(p.361)
- • Multiple food safety violations and regulatory proceedings against restaurants(p.392)
- • Outstanding litigation related to stamp duty for merger/amalgamation(p.392)
- • Criminal proceedings relating to alleged forced acquisition of ANTPL business(p.391)
- • Multiple labour law violations across various establishments(p.392)
- • Operating restaurants without required licenses and permits(p.391)
Opportunities
- • Rapid expansion potential in high-growth QSR market segment(p.21)
- • Geographic expansion into underpenetrated markets with existing franchise rights(p.36)
- • Strengthening operational recovery following COVID-19 disruption(p.32)
- • Restaurant network growth capability with 450 operational restaurants(p.33)
- • Development incentives to accelerate new restaurant openings(p.36)
- • Value leadership strategy tailored to local tastes at attractive prices(p.53)
- • Expansion into new geographies and brand portfolio diversification(p.66)
- • Innovative product development and regional menu offerings(p.53)
- • Rapid growth of organized food services market in India(p.154)
- • Strong CAGR growth projected for chain QSR segment(p.157)
- • Large young demographic driving eating-out behavior(p.162)
- • Expanding real estate options for restaurant formats(p.177)
- • Growth of online food delivery platforms and digital channels(p.174)
- • Shift from unorganized to organized food services market(p.176)
- • Growth drivers for Pizza Hut and chicken segments in India(p.162)
- • High growth trajectory of organized QSR segment in India with 23% CAGR projected(p.181)
- • Significant market share opportunity through conversion from unorganized to organized sector(p.181)
- • Low QSR penetration in lower-tier cities creating expansion opportunity(p.188)
- • Strong chicken and pizza category tailwinds with increasing protein consumption in India(p.181)
- • Post-COVID consumer preference shift toward organized QSR chains with hygiene standards(p.188)
- • Digital platform expansion and enhanced CRM capabilities for customer engagement(p.186)
- • Geographic expansion of QSR franchise operations(p.253)
- • Leverage established brand franchises for market penetration(p.270)
- • International expansion through existing subsidiary network(p.271)
- • Expansion of store network under development agreements with Yum(p.319)
- • Growth in KFC brand with 210 net new stores targeted over 5 years starting January 2019(p.319)
- • Geographic diversification with operations in India, Sri Lanka and Maldives reducing single-market dependence(p.323)
- • Recovery in restaurant sales post-COVID reflecting resilience of core business model(p.316)
- • Significant market penetration opportunity in India(p.352)
- • Rapidly expanding middle class and dining-out population(p.352)
- • Delivery channel growth and compact restaurant formats(p.352)
- • Incentive structure supporting expansion(p.354)
Threats
- • Severe business disruption from COVID-19 pandemic with uncertain recovery(p.32)
- • Major impairment losses indicating structural business challenges(p.32)
- • Intense competition from established QSR chains and new entrants(p.50)
- • Supply chain disruptions affecting ingredient availability(p.44)
- • Regulatory and compliance risks with ongoing tax investigations(p.47)
- • Development agreement penalty risk if expansion targets not met(p.33)
- • Franchisor termination risk if obligations not met(p.44)
- • Consumer preference shifts toward healthy eating(p.45)
- • Rent obligation risks with landlord negotiations(p.34)
- • Foreign exchange and currency volatility in Sri Lanka and Maldives operations(p.40)
- • Foreign exchange rate fluctuations on imports and fees(p.51)
- • Reputational damage from global brand incidents outside territory(p.51)
- • Food safety incidents and health epidemics(p.52)
- • Regulatory changes requiring compliance investments(p.54)
- • Ingredient and packaging cost inflation(p.59)
- • High inflation limiting pricing power(p.59)
- • Reliance on third-party logistics and supply chain disruptions(p.60)
- • Minimum wage increases and labor regulation changes(p.61)
- • Competition from delivery aggregators and online platforms(p.63)
- • Inability to identify suitable restaurant locations(p.63)
- • Macroeconomic slowdown and consumer discretionary spending decline(p.77)
- • Political instability and social unrest in operating markets(p.77)
- • Regulatory restrictions on fast food advertising and negative health campaigns(p.76)
- • Cannibalisation of sales from new restaurant openings(p.64)
- • Restaurant closures from business viability failures(p.64)
- • Intense competition from established chain QSR players(p.165)
- • Severe impact of COVID-19 on restaurant operations and revenues(p.157)
- • High real estate and operational costs limiting profitability(p.172)
- • Shortage of skilled manpower and high attrition rates(p.172)
- • Complex regulatory environment requiring multiple licenses(p.172)
- • Rising competition from food aggregators and delivery platforms(p.174)
- • Economic challenges and currency fluctuations in Sri Lanka(p.178)
- • Regulatory changes and restrictions on restaurant operations due to lockdowns and capacity constraints(p.195)
- • Intense competition from established international and local QSR chains(p.202)
- • Volatility in food input costs and supply chain disruptions affecting margins(p.197)
- • Dependence on landlord relationships and rental escalations affecting profitability(p.201)
- • Changes in consumer tastes and religious beliefs affecting demand(p.202)
- • Non-exclusive franchise territory rights limiting market control and expansion(p.192)
- • Susceptibility to pandemic-related lockdowns and restrictions(p.269)
- • Dependence on lease arrangements and rental stability(p.284)
- • Concentration of operations in specific geographic markets(p.270)
- • Reliance on franchisor relationships and brand permissions(p.270)
- • Exposure to foreign exchange volatility in international operations(p.267)
- • COVID-19 pandemic significantly impacting QSR demand with exceptional charges of INR 943.91 million in FY2020(p.317)
- • Revenue volatility with significant decline from INR 13,404.12 million in FY2020 to INR 10,196.19 million in FY2021(p.316)
- • Regulatory risks including contingent GST liability of INR 67.88 million and stamp duty claim of INR 194.60 million(p.318)
- • Dependence on franchisee model with Yum creating concentration risk in brand relationships and development targets(p.319)
- • High interest burden on lease liabilities consuming significant cash flows with finance costs of INR 755.65 million in FY2021(p.317)
- • COVID-19 pandemic materially impacting restaurant operations(p.350)
- • Intense competition from established QSR players(p.355)
- • Consumer discretionary spending vulnerability to macroeconomic conditions(p.354)
- • Seasonal demand fluctuations affecting revenue(p.365)
- • Rising input costs and energy price inflation(p.354)
- • Regulatory food safety standards compliance risks in restaurant industry(p.397)
- • Changes in foreign exchange regulation affecting overseas operations(p.396)
- • Significant financial debt with restrictive covenants limiting business flexibility(p.387)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| QSR Management Trust | Promoter Selling Shareholder | 5.84% | — |
| Sapphire Foods Mauritius Limited | Promoter Selling Shareholder | 46.80% | — |
| Sapphire Foods Mauritius Limited | Promoter | 29,739,576 Equity Shares (46.82%) | 24,170,043 Equity Shares after offer for sale of 5,569,533 shares |
| QSR Management Trust | Promoter | 3,709,385 Equity Shares (5.84%) | 2,859,385 Equity Shares after offer for sale of 850,000 shares |
| Sapphire Foods Mauritius Limited | Promoter and Selling Shareholder | 46.80% | 38.04% |
| QSR Management Trust | Promoter and Selling Shareholder | 5.84% | 4.50% |
| Arinjaya (Mauritius) Limited | Promoter Group | 8.01% | 8.01% |
| Sapphire Foods Mauritius Limited (Selling Shareholder) | Promoter | — | — |
| QSR Management Trust (Selling Shareholder) | Promoter | — | — |
| Sapphire Foods Mauritius Limited | Promoter | 46.80% | — |
| QSR Management Trust | Promoter | 5.84% | — |
| Sapphire Foods Mauritius Limited | Promoter/Promoter Group | 33.10% | — |
| WWD Ruby Limited | Promoter/Promoter Group | 31.60% | — |
| Amethyst Private Limited | Promoter/Promoter Group | 16.62% | — |
| QSR Management Trust through trustee Sagista Realty Advisors Private Limited | Promoter/Promoter Group | 7.01% | — |
| Edelweiss Crossover Opportunities Fund | Promoter/Promoter Group | 8.05% | — |
| QSR Management Trust | Selling Shareholder | — | — |
| Sapphire Foods Mauritius Limited | Selling Shareholder | — | — |
| WWD Ruby Limited | Selling Shareholder | — | — |
| Amethyst Private Limited | Selling Shareholder | — | — |
| AAJV Investment Trust | Selling Shareholder | — | — |
| Edelweiss Crossover Opportunities Fund | Selling Shareholder | — | — |
| Edelweiss Crossover Opportunities Fund – Series II | Selling Shareholder | — | — |
| Sapphire Foods Mauritius Limited | Selling Shareholder | — | — |
| QSR Management Trust | Selling Shareholder | — | — |
| Sapphire Foods Mauritius Limited | Selling Shareholder | — | — |
| WWD RUBY LIMITED | Selling Shareholder | — | — |
Leadership
Sanjay Purohit · Group Chief Executive Officer
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.
Sapphire Foods India IPO FAQs
What is the lot size of Sapphire Foods India IPO?
The minimum lot size of Sapphire Foods India IPO is 12 shares. One lot costs ₹14,160 at the cut-off price.
When does Sapphire Foods India IPO open and close?
Sapphire Foods India IPO opened for subscription on 09 Nov 2021 and closed on 11 Nov 2021.
What is the listing date of Sapphire Foods India IPO?
Sapphire Foods India IPO listed on 18 Nov 2021.