Hi, The IPO opens on 14 and closes on 16 of this month. Minimum slot to buy is 45 shares. The company is owned by Siddarth. For people not familiar with him, he has stake in Mindtree and owns Serai Resorts. He is a politically well connected. He is son in law of former Karnataka CM S M Krishna. His family are traditional coffee growers hailing from powerful Gowda community. The company proposed to use the money in 3 broad categoties:- 1. To further their coffee business in India. They propose to open new outlets of CCD and CCD express 2. They want to use money for manufacturing and assembling of coffee vendfing machines. These machines will be installed in offices,railway stations and bus stations. 3. They want to use the money to basically service their existing loan Company has not posted any profit for lasdt two years and has a -ve EPS of 5.73. This may look bad but if you look at the revenues it has doubled in last 3 years which is great. The company had clear competition from STARBUCKS promoted by TATAs but the pricing factor is their biggest handicap. CCD positions itself as the IN place for the young college going crowd and the preferred "ADDA" The IPO opens at a price range of 316-328 with a minimum of 45 slots and multiples of 45 from there on. Guys do you think its an IPO worth subscribing ??
I would say to stay away for now as its a loss making company. One can look to invest once it starts making some profits.