KFC, Pizza Hut operator Sapphire Foods files DRHP with SEBI to raise funds via IPO

Sapphire Foods India Ltd, which governs the KFC and Pizza Hut joints in India has issued a draft with capital market regulator giant SEBI with the primary aim to raise funds through an IPO. The initial share-sale is supposedly an offer-for-sale (OFS) of 17,569,941 equity shares by the chunk promoters and existing shareholders, as per the draft red herring prospectus (DRHP).

Being a part of the OFS, QSR Management Trust will sell roughly 8.50 lakh shares, Sapphire Foods Mauritius Ltd will give away 55.69 lakh shares, WWD Ruby Ltd will deviate 48.46 lakh shares and Amethyst will sell 39.62 lakh shares.

Sapphire Foods, an extensive channel of restaurant operators and the largest franchisee of Yum Brands in the Indian landscape, is endorsed by marquee investors such as Samara Capital, Goldman Sachs, CX Partners and Edelweiss.

With effect from 31, 2021, Sapphire Foods governs and operates 204 KFC restaurants in India and the Maldives, around 231 Pizza Hut restaurants in India, Sri Lanka and the Maldives, and approximately two Taco Bell restaurants in Sri Lanka.

Devyani International, another franchise of Yum! Brands in India helps in the functioning of around 297 Pizza Hut stores and 264 KFC stores and thereby issued Rs 1,838-crore IPO past week.

On Monday, Sapphire Foods proclaimed that it issued around Rs 1,150 crore funds via., a mix of primary and secondary rounds derived from its private equity funds headed by Creador, NewQuest Capital Partners and TR Capital.

JM Financial, BofA Securities, ICICI Securities and IIFL Securities are the announced prime managers to the company’s public issue. The equity shares of the company will be registered on BSE and NSE.

funds Sapphire Foods