Coffee Day Enterprises on Wednesday fixed the price band at Rs 316-328 per share for its initial public offering (IPO). The IPO opens on October 14 and closes October 16, through which the company aims to raise Rs 1,150 crore – the biggest IPO since the public issue of Bharti Infratel in December 2012.
The Bengaluru-based company will dilute about 17.55% stake on post-offer basis that will value the company at Rs 6,750 crore. The company aims to raise R 340 crore by allotting shares to anchor investors on October 13.
Kotak Mahindra Capital Company, Citigroup Global Markets India and Morgan Stanley India Company, Axis Capital, Edelweiss Financial Services Limited and YES Bank are the book running lead managers for the issue.
The company intends to use its proceeds to pay back existing debts worth Rs 632.8 crore, while rest of the amount would be used for general corporate purposes. Out of the total shares on offer, 50% are reserved for qualified institutional bidders (QIBs), while 35% are for retail investors.
Coffee Day Enterprises is the parent company of the Coffee Day Group and operates coffee business through a subsidiary, Coffee Day Global and its subsidiaries. The company also has presence in real estate sector through a subsidiary Sical Logistics. It also owns 16.75% equity holding in Information Technology company Mindtree.
Coffee Day is the 16th IPO to hit the market in CY15, with 15 companies having raised close to Rs 6,500 from primary markets so far.
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