Coffee Day fixes IPO price band of Rs 316-328; eyes Rs 1,150cr

Coffee Day Enterprises, which runs Cafe Coffee Day (CCD), today said it has fixed the price band of its Rs 1,150 crore initial public offer at Rs 316-328 per share and it will open on October 14.
The issue, which closes on October 16, comprises a net issue to the public and a reservation of Rs 15 crore worth equity shares for subscription by eligible employees.
The minimum bid lot is 45 equity shares and in multiples of 45 shares therein.
Kotak Investment Banking, Citigroup, Morgan Stanley, Axis Capital, Edelweiss and YES Bank are handling the IPO.
"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 here.

"We will open 135 new stores every year," he added.

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 Rs 100 crore in a pre-IPO funding from Nandan Nilekani and Rare Enterprises (owned by Rakesh Jhunujunwala and Ramesh Damani) among others. Private equity major, KKR has also invested in Coffee Day.
In addition to having the largest chain of cafes in India, it operates a fully-integrated coffee business ranging from procuring, processing and roasting of coffee beans to retailing of coffee products across various formats.