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Pizza Hut, KFC Franchise Operators' IPO Subscribed 3.37 Times Up Until Now On Final Day

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Sapphire Foods IPO: The price band is fixed at Rs 1,120- Rs 1,180 per share for the IPOThe initial public offer (IPO) of Sapphire Foods India, the franchise holder of KFC and Pizza Hut restaurants is subscribed 3.37 times up until now on its third and final day of issue, according to membership information on the stock market.

The IPO of the food cycle operator opened on Tuesday, November 9 and will close today - staying open for financiers for three days.

The company repaired a rate band of Rs 1,120 - Rs 1,180 per share for the IPO.

The IPO of over 17.5 million shares is completely an offer for sale (OFS) by the promoters and investors of the company.

The IPO proceeds, apart from concern expenditures, will go to shareholders who are selling their stakes.On Thursday, retail individual investors revealed optimal interest as the portion reserved for them is subscribed by 7.39 times up until now - the greatest amongst the 3 groups of investors.

The part reserve for certified institutional buyers or QIB is subscribed 3.40 times, while the portion reserved for non-institutional investors is subscribed 0.66 times, so far.Sapphire Foods is among India's biggest dining establishment franchisee operators and Sri Lanka's biggest global QSR chain.

Since fiscal 2019-20, Sapphire Foods India is YUM brand's largest franchise operator in the Indian subcontinent in terms of income At the greater end of the rate band, Sapphire Foods IPO is priced at a mcap/sales ratio of 7.4 times on a post-issue totally watered down basis (based on FY21 sales).

This is lower compared to its listed peers Jubilant Foodworks (12.1 times), Burger King (10.27 times) and Devyani International (15.71 times).

Nevertheless, as Jubilant Foodworks has remarkable success and return ratios, it is expected to command a premium valuation.Given lower profitability, sensible assessments, and poorer return ratios as compared to its peers, we remain 'Neutral' on the long-term prospects of the issue.Given a fancy for IPOs in the continuous season, the business might still see strong subscription numbers.

Investors looking for listing gains can subscribe to the problem, SEBI-registered financial investment advisor INDmoney said in a report.




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