Sapphire Foods IPO subscribed 6.62 times on final day

“The meals companies market in India is projected to develop at a CAGR of 8.0% from the monetary yr 2020 to monetary yr 2025, and is anticipated to succeed in Rs 6,211 billion by monetary yr 2025,” stated HDFC Securities in a pre-IPO word.

The preliminary share sale of Sapphire Meals, operator of KFC and Pizza Hut retailers, closed with a 6.62x subscription on its last day of bidding on Thursday. The corporate acquired bids for six.39 crore fairness shares, towards its supply of 96.63 lakh shares.

Retail curiosity within the public supply remained buoyant because the portion put aside for particular person buyers acquired 8.70 occasions subscription. The portion put aside for certified institutional patrons (QIBs) and non-institutional buyers (NIIs) acquired subscriptions of seven.50 and three.46 occasions, respectively.

The corporate is unlikely to get any proceeds from the Rs 2,073-crore IPO as the problem was a whole offer-for-sale by current shareholders and promoters.

The supply opened for subscription on November 9. A day earlier than, the corporate garnered Rs 933 crore from anchor buyers, allocating 7,906,473 fairness shares on the higher worth band of Rs 1,180/share.

The corporate is a number one identify within the fast service restaurant (QSR) chain and can additional get pleasure from a considerable presence in India and Sri Lanka in future. The meals service market in India has grown considerably since 2015 and is anticipated to develop at greater ranges in 2025, brokerages stated.

“The meals companies market in India is projected to develop at a CAGR of 8.0% from the monetary yr 2020 to monetary yr 2025, and is anticipated to succeed in Rs 6,211 billion by monetary yr 2025,” stated HDFC Securities in a pre-IPO word.

As of June 30, 2021, the agency owned and operated 209 KFC eating places in India and the Maldives, 239 Pizza Hut eating places in India, Sri Lanka and the Maldives, and two Taco Bell eating places in Sri Lanka.