KFC, Pizza Hut operator Sapphire Foods files papers with Sebi to raise funds via IPO

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Sapphire Foods India (SFIL), the operator of KFC and Pizza Hut outlets, on Wednesday filed its draft red herring prospectus (DRHP) with the market regulator Securities and Exchange Board of India. The initial public offering (IPO) comprises up to 17,569,941 equity shares of face value of Rs 10 each of Sapphire Foods India Limited through an offer for sale by the selling shareholders, comprising of up to 850,000 equity shares by QSR Management Trust, up to 5,569,533 equity shares by Sapphire Foods Mauritius, up to 4,846,706 equity shares by WWD Ruby Limited, up to 3,961,737 equity shares by Amethyst Private Limited, up to 80,169 equity shares by AAJV Investment Trust, up to 1,615,569 equity shares by Edelweiss Crossover Opportunities Fund and up to 646,227 equity shares by Edelweiss Crossover Opportunities Fund – Series II.

The offer includes a reservation for subscription by eligible employees not exceeding 1% of the post-offer paid-up equity share capital. JM Financial Limited, BofA Securities India Limited, ICICI Securities Limited and IIFL Securities are the book running lead managers to the issue. Equity shares of the company will be listed on BSE and NSE.

Sapphire Foods’ filed papers for IPO at a time when competitor Devyani International is also set to go public. Devyani International launched its initial public offering last week.

Of late, the Samara Capital-promoted Sapphire Foods, which is the largest franchisee of Yum Brands in the Indian sub-continent operating over 435 stores, has raised Rs 1,150 crore funds through a mix of primary and secondary rounds from private equity funds led by Creador, NewQuest Capital Partners and TR Capital.

In addition, the company has also raised a direct round of growth capital from Creador and the new money is a mix of primary and secondary rounds, Sapphire said on Monday without disclosing the equity dilution.

Sapphire Foods operates 437 restaurants under the KFC, Pizza Hut and Taco Bell brands in India, Sri Lanka and the Maldives as of March 2021. The investment is flowing into its holding company, Sapphire Foods Mauritius, an entity promoted by Samara Capital, the statement said.