New Delhi: The shares of Sapphire Foods India, which operates KFC and Pizza Hut made a strong debut at the exchanges on Thursday. The stock got listed at Rs 1,350 on the National Stock Exchange (NSE), a premium of 14.41 per cent over its issue price of Rs 1,180. On the BSE platform, the stock started trading at Rs 1,311.
However, the stock gave up all of its gains and plunged into red soon after the positive opening.
The Rs 2,073-crore IPO had received bids for 1,03,68,948 shares against 96,63,468 shares on offer, translating into 1.07 times subscription, according to NSE data.
The category for Retail Individual Investors (RIIs) was subscribed 5.38 times, non-institutional investors’ portion by 29 per cent and qualified institutional buyers’ (QIBs) by 3 per cent.
The company had raised Rs 933 crore from anchor investors.
Sapphire Foods, the largest franchisee of Yum Brands in the Indian sub-continent, is backed by marquee investors such as Samara Capital, Goldman Sachs, CX Partners and Edelweiss.
As of March 31, 2021, Sapphire Foods owned and operated 204 KFC restaurants in India and the Maldives, 231 Pizza Hut restaurants in India, Sri Lanka and the Maldives, and two Taco Bell restaurants in Sri Lanka.
JM Financial, BofA Securities India, ICICI Securities and IIFL Securities acted as managers to the offer.
On the other hand, shares in Paytm plummeted 21 per cent in their market debut.