Anchor investors buy Rs.334 crore equity share of Coffee Day

Coffee Day Enterprises on Wednesday said it has allotted 1.03 crore equity shares worth Rs.334.27 crore to 17 anchor investors.

The company, which operates food and beverages outlets Cafe Coffee Day, said it has allotted 1.038 crore equity shares at Rs.322 per share aggregating to Rs.334.27 crore to 17 anchor investors.

The company made the disclosure under the regulatory norms after initiating its Initial Public Offering (IPO) exercise.

Some of the 17 anchor investors, who bought the company's shares are Blackrock, Government Pension Fund Global, ICICI Prudential MF, Reliance Life Insurance, Merrill Lynch, Swiss Finance Corp., Axis MF, Faering Capital India Evolving Fund, Jupiter India Fund, Platinum Asia Fund and Tarra Fund.

The company's IPO will close on Friday. It aims to raise Rs.1,150 crore from the IPO.

The company is offering equity shares of the face value of Rs.10 per equity shares for cash.

Coffee Day Enterprises chairman V.G. Siddhartha said on Monday that the proceeds from the IPO would be deployed for reducing debt and expanding the company's outlet footprint across the country.

Currently, the company operates 1,538 outlets across India. On an average, a new outlet costs between Rs.37-40 lakh.