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Coffee Day Enterprises, which runs Cafe Coffee Day (CCD) chain of restaurants, will hit capital markets tomorrow to raise ₹1,150 crore through its maiden public offering.
This will be the biggest initial public offering (IPO) in the country in nearly three years.
The company, which competes with global giant Starbucks in the fast-growing Indian consumer market, has fixed a price band of ₹316-328 per share for its IPO.
The Coffee Day Enterprises IPO would open on October 14 and close on October 16, wherein it would sell shares to the public while a portion would be reserved for employees.
Kotak Investment Banking, Citigroup, Morgan Stanley, Axis Capital, Edelweiss and Yes Bank are handling the IPO of Coffee Day Enterprises, whose shareholders include private equity giants KKR and New Silk Route.
Upcoming IPOs
Besides being the biggest in nearly three years, it is also seen as heralding the long-awaited revival in the IPO market as it could be followed by a number of big brands such as Infibeam, the first e-commerce firm to launch an IPO in India, and InterGlobe Aviation Ltd that operates the country’s most successful airline under IndiGo brand.
A number of small IPOs have hit the markets successfully in recent months, but the market has not witnessed any big public issue for a long time.
With initial share-sale plan of Coffee Day Enterprises, the IPO market is set for a four-year record performance this year as close to ₹6,600 crore have already been raised.
This IPO would take the total mop up in 2015 so far to close to ₹7,800 crore.
In comparison, six IPOs had hit the market in the entire 2014 and together garnered just ₹1,261 crore, while three firms had launched their public issues in 2013 to mobilise ₹1,284 crore.
A total of ₹6,938 crore and ₹5,966 crore had been mopped up in 2012 and 2011, respectively.
Siddhartha, who is the main promoter as well as chairman and managing director, holds 54.78 per cent stake in the company while all promoters together have 92.74 per cent holding in the company.
In March, Coffee Day raised ₹100 crore in a pre-IPO funding from Nandan Nilekani and Rare Enterprises (owned by Rakesh Jhunujunwala and Ramesh Damani), among others.
Coffee Day Enterprises is the parent company of Coffee Day Group and operates coffee business through a subsidiary, Coffee Day Global Ltd (earlier known as Amalgamated Bean Coffee Trading Company Limited) and its subsidiaries.
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