Creador Exits Sapphire Foods India with Rs 394 Crore Stake Sale

Kuala Lumpur-based private equity firm Creador exited Sapphire Foods India on Wednesday by selling its entire 3.75% stake for Rs 394 crore through an open market transaction. Kotak Mahindra Mutual Fund acquired an additional stake in the omnichannel restaurant operator.

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Sapphire Foods India Ltd (SFIL) is a major franchisee of Yum! Brands, operating KFC, Pizza Hut, and Taco Bell outlets in India, Sri Lanka, and the Maldives. According to bulk deal data from the National Stock Exchange (NSE), Creador's affiliate Arinjaya Mauritius Ltd sold 23,90,503 shares, representing a 3.75% stake in SFIL.

Stake Sale Details

The shares were sold at an average price of Rs 1,649.94 each, amounting to Rs 394.42 crore. Following this sale, the combined shareholding of promoter and promoter group entities in SFIL decreased from 30.82% to 27.07%.

Meanwhile, Kotak Mahindra Mutual Fund purchased 5.99 lakh shares or a 0.94% stake in Sapphire Foods India at an average price of Rs 1,650 per share. Details of other buyers of SFIL's shares were not available.

Financial Performance

Last month, Sapphire Foods India reported its first-quarter earnings for FY25 with a profit of Rs 8.52 crore, down 65.8% from Rs 24.94 crore during the same quarter of FY24. However, revenue from operations increased by 9.8%, reaching Rs 718.29 crore compared to Rs 654.38 crore in the first quarter of the previous financial year.

Shares of Sapphire Foods India fell by 1.65%, closing at Rs 1,628.95 each on the NSE.

In December last year, Creador's arm Arinjaya Mauritius Ltd offloaded a 4.2% stake in SFIL for Rs 378 crore.

This recent transaction highlights ongoing changes in the ownership structure of Sapphire Foods India amidst fluctuating financial performance and market conditions.