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Complex holdings may hit fundraising plans of Coffee Day Enterprises

A complex holding structure and unrelated businesses clubbed under one roof could have been the reasons that prompted investors to shun the stock, experts say

Cafe Coffee Day
Cafe Coffee Day outlet in Connought Place in New Delhi | Photo - Dalip Kumar

Investors, especially institutional, were never keen on owning Coffee Day Enterprises stock since its listing in late 2015 despite the company operating a successful coffee retail chain, which had a significant brand recall.  A complex holding structure and unrelated businesses clubbed under one roof could have been the reasons that prompted investors to shun the stock, experts say. These are likely to impact the company’s ability to raise funds, too, they add.  “If you see the size of the company, mutual funds hold a miniscule stake in the firm. FIIs ...