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Paytm IPO subscribed 18% on Day 1; Sapphire Foods IPO opens today

K. S. Badri Narayanan | | | Updated on: Nov 09, 2021
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KFC and Pizza Hut outlet raises ₹933 cr from anchor investors ahead of IPO

The Rs 2,073-crore IPO of Sapphire Foods India Ltd, which operates KFC and Pizza Hut outlets, opens to public on Tuesday. For Paytm IPO, it will be second day.

The Sapphire issue, with a price band of ₹1,120-1,180 a share will close on November 11. Market lot is 12 shares.

The initial public offering (IPO) will be entirely an offer of sale (OFS) of 1,75,69,941 equity shares by promoters and existing shareholders. QSR Management Trust will sell 8.50 lakh shares, Sapphire Foods Mauritius Ltd will offload 55.69 lakh shares, WWD Ruby Ltd will divest 48.46 lakh shares and Amethyst will offer 39.62 lakh shares.

In addition, AAJV Investment Trust will sell 80,169 shares, Edelweiss Crossover Opportunities Fund will offload 16.15 lakh shares and Edelweiss Crossover Opportunities Fund-Series II will divest 6.46 lakh shares.

Anchor investors

Sapphire Foods India has raised ₹933 crore from anchor investors ahead of its IPO rollout on Tuesday.

The company has decided to allocate a total of 79,06,473 equity shares to 53 anchor investors at ₹1,180 apiece, aggregating the transaction size to Rs 932.96 crore, according to a circular uploaded on BSE website.

Among the investors included Government of Singapore, Monetary Authority of Singapore, Fidelity Funds, Abu Dhabi Investment Authority, Morgan Stanley Asia (Singapore) Pte, ICICI Prudential Life Insurance Company, Bajaj Allianz Life Insurance Company and Sundaram Mutual Fund (MF).

The company said that up to 75 per cent of the shares has been reserved for qualified institutional buyers (QIBs), 15 per cent for non-institutional buyers and the remaining 10 per cent for retail investors.

Sapphire Foods, an omnichannel restaurant operator and 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.

One97 IPO enters second day

Country’s largest ever IPO of One97 Communications (Paytm) was subscribed 18 per cent on day 1 of issue opening. The IPO will close on November 10. The IPO price band was fixed at ₹2,080-2,150 and the market lot is 6 shares.

One97 Communications plans to raise ₹18,300 crore from the issue.

The portion reserved for retail investors saw a robust response by getting subscription of 78 per cent while QIBs and non-institution quota received only a muted response of 0.06 per cent and 0.02 per cent respectively.

While 75 per cent has been reserved for qualified institutional buyers (QIBs), 15 per cent for non-institutional investors (NIIs) and the remaining 10 per cent for retail investors.

The IPO comprises issuance of fresh equity shares worth ₹8,300 crore and an offer-for-sale (OFS) of Rs 10,000 crore by existing shareholders including its founder Vijay Shekhar Sharma along with Ant Financials, Alibaba, Elevation Capital, and SAIF III Mauritius Company, Saif Partners and BH International Holdings.

Anchor investors

On Friday, Paytm, has raised Rs 8,235 crore from 122 anchor investors by allocating 3.83 crore shares at Rs 2,150 a share.

BlackRock Global Funds and Canada Pension Plan Investment Board (CPPIB) have garnered a bulk of Paytm shares offered through anchor investors' portion, according to NSE data.

BlackRock Global Funds - through World Technology Fund (40.38 lakh shares) and World Financial Fund (6.376 lakh shares) - has garnered 12.2 per cent of the total anchor portion. CPPIB has been allotted about 43.62 lakh shares (11.4 per cent).

The others anchor investors who got the shares included Aditya Birla Sun Life Trustee, Government of Singapore, Vanguard, Schroder International Selection Fund, Sands Capital Funds, Mirae Asset, Marshall Wace Investment Strategies, Fidelity, UBS, Janus Henderson, Nomura India Investment Fund, HDFC Mutual Fund, Morgan Stanley Asia (Singapore), Goldman Sachs (Singapore), Fidelity, Master Trust Bank of Japan, Janus Henderson, Aberdeen, Societe Generale and BNP Paribas.

Published on November 09, 2021

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