GIC, ADIA make anchor bets on KFC operator Sapphire Foods’ IPO

 GIC, ADIA make anchor bets on KFC operator Sapphire Foods’ IPO

Restaurant operator Sapphire Foods India Ltd, an Indian franchisee of Yum! Brands Inc., has raised Rs 933 crore ($126 million) from anchor investors ahead of its initial public offering.

The company on Monday allotted 7.9 million shares at the upper end of its IPO price band of Rs 1,120-1,180 apiece, stock-exchange data show. The IPO opens Tuesday and closes Thursday.

Singapore sovereign wealth fund GIC Pte Ltd bought shares worth Rs 122 crore, or around 13% of the anchor book.

Abu Dhabi Investment Authority, the wealth fund of the Gulf emirate, and an Indian hedge fund managed by former Goldman Sachs executive Prashant Khemka’s White Oak Capital purchased shares for Rs 70 crore each.

Ontario Teachers’ Pension Plan, a Canadian pension fund, invested Rs 35.9 crore. Two Indian asset management companies, HDFC Mutual Fund and Sundaram MF, as well as a few insurers including ICICI Prudential Life Insurance Company, SBI General Insurance and Reliance General Insurance also came in as anchor investors.

Sapphire Foods’s IPO comprises a sale of about 17.5 million shares by its controlling shareholders and investors including private equity firms Samara Capital and CX Partners.

The company, which runs KFC, Pizza Hut and Taco Bell chains in the Indian subcontinent, is not raising any fresh capital. The IPO size is Rs 2,073 crore at the upper end of the band.

The IPO comes about three months after Sapphire Foods raised growth capital from private equity firm Creador in a transaction that also involved some existing investors making a partial exit. India- and Southeast Asia-focussed Creador and secondaries specialists NewQuest Capital and TR Capital had invested Rs 1,150 crore (about $155 million) in August. This helped CX Partners, Samara Capital, Goldman Sachs and Edelweiss PE clock partial exits.

The company is targeting a valuation of Rs 7,498 crore ($1 billion) in the IPO. It was valued around Rs 4,000-4,200 crore in the August funding round, as per estimates by The Capital Quest.

Sumit Upadhyaya

error: Content is protected !!
The Capital Quest