0

0

0

0

0

0

0

0

0

KFC, Pizza Hut operator Sapphire Foods trims listing gains; trades 6% higher

Mini

Sapphire Foods India shares, the operator of KFC and Pizza Hut, was listed at Rs 1,311 on the Bombay Stock Exchange (BSE), then rose 17 percent to hit an intraday high of Rs 1,383.60. Later, the stock was up 5.26 percent at Rs 1242.10 apiece.

KFC, Pizza Hut operator Sapphire Foods trims listing gains; trades 6% higher
Sapphire Foods India shares, the operator of KFC and Pizza Hut fast-food chains, curtailed listing gains on Thursday afternoon after a strong debut on the bourses.
While the stock was listed at a 14 percent premium at Rs 1,350 per share on the National Stock Exchange (NSE) against the IPO issue price of Rs 1,180, at 2:26 pm, it was trading at Rs 1,243.65 on the exchange.
On the Bombay Stock Exchange (BSE), the stock was listed at Rs 1,311 then rose 17 percent to hit an intraday high of Rs 1,383.60. Later, the stock was up 5.26 percent at Rs 1242.10 apiece. The market capitalisation of the firm rose to Rs 8,305.65 crore on BSE.
Sapphire Foods India's IPO received a strong response from investors with the issue getting subscribed 6.62 times between November 9 and November 11.
Santosh Meena, Head of Research at Swastika Investmart, said the stock’s listing was as expected. He suggested aggressive investors hold the Sapphire stock for the long term as the business outlook is encouraging whereas short-term traders can aim at a near-term target of Rs 1,500 with a stop loss at Rs 1,100.
"Sapphire Foods is a loss-making company. However, we have seen successful companies in the market from similar spaces. If we talk about valuations, it is coming out with seven times FY21 sales while recently listed Devyani International is trading at 14 times, therefore it is coming out with attractive valuations compared to peers and has strong brand names under its umbrella," he said.
Also Read
The original share sale of Sapphire Foods India was solely an offer for sale (OFS) by promoters and current shareholders. In the qualified institutional buyer (QIB) category, the IPO was subscribed 7.5 times, while in the non-institutional investor category, it was subscribed 3.5 times. The limit set up for retail investors was filled 8.7 times.
Paytm joined the secondary market the same day as Sapphire Foods, however, failed to cheer the Street. Paytm, owned by One97 Communications, made a weak debut as its shares were listed at a discount to the issue price of its IPO.
On the BSE, Paytm shares opened for the first time at Rs 1,955, a discount of 9.1 percent to the issue price of Rs 2,150. On the NSE, the One97 stock began its journey at Rs 1,950, a discount of 9.3 percent.
next story