The company has more than 1,500 stores in India and 14 overseas
India's top coffee chain operator Coffee Day Enterprises with hit the capital market on October 14 to raise an estimated Rs 1,150 crore as it eyes a valuation of over Rs 6,500 crore (nearly $1 billion).
Mumbai: In the biggest IPO in nearly three years, India’s top coffee chain operator Coffee Day Enterprises with hit the capital market on October 14 to raise an estimated Rs 1,150 crore as it eyes a valuation of over Rs 6,500 crore (nearly $1 billion).
The company operates under Cafe Coffee Day (CCD) brand and competes with global giant Starbucks in the fast-growing Indian consumer market. On Wednesday, it has fixed a price band of Rs 316-328 per share for its initial public offer (IPO).
Besides being the biggest in nearly three years, it is also being 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 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. In 2014, six IPOs had hit the market, but the total amount garnered was just Rs 1,528 crore.
The Coffee Day Enterprises IPO would open on October 14 and close on October 16. “Of the money raised, Rs 635 crore will go into reducing the debt in the holding company, while we have committed to our investors, Rs 290 crore over the next 18 months will go towards expansion of coffee business. The surplus of Rs 125 crore will also go towards the coffee business,” V.G. Siddhartha, chairman of Coffee Day Enterprises said.
The company has more than 1,500 stores in India and 14 overseas. “We will open 135 new stores every year,” he added.
( Source : PTI )
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