The initial public offering (IPO) of Coffee Day Enterprises gained traction on Thursday, with the issue clocking 75% subscription on the second day of the book building process (Express Photo) (Express Photo)

The initial public offering (IPO) of Coffee Day Enterprises gained traction on Thursday, with the issue clocking 75% subscription on the second day of the book building process. The IPO had recieved 13% subscription when it opened on Wednedsay.

Bids poured in from qualified institutional bidders (QIBs) exhibiting confidence in the issue. Institutional investors bid 1.45 crore shares against 73.80 lakh shares reserved for the category, stock exchange data showed. The QIB book was subscribed nearly two times as on Thursday evening.

The non-institutional category, comprising high net worth individuals (HNIs) bid for 3.89 lakh shares out of 53.87 lakh shares on offer. Retail investors subscribed 41.93 shares against an offering of 1.25 crore shares.

On Tuesday, the Bengaluru-based company, that runs Cafe Coffee Day outlets, had raised around Rs334.27 crore through a pre-IPO placement to anchor investors. A little over 1.03 crore shares were allotted to 17 institutional investors at a price of  Rs322 a piece. List of anchor investors included Blackrock, Government Pension Fund Global, ICICI Prudential Mutual Fund, Merrill Lynch, Swiss Finance Corp and Axis Mutual Fund.

The public issue, which closes on Friday, is priced at Rs 316-328 per piece. The company aims to raise a total of Rs 1,150 crore public investors to pay back existing debts and for general corporate purposes. The company aims to retire Rs 632.8 crore of its total debt, according to information made available in the draft prospectus.

Kotak Investment Banking, Citigroup, Morgan Stanley, Axis Capital, Edelweiss and Yes Bank are the lead book running managers for the issue.

Coffee Day Enterprises is the parent company of Coffee Day Group and the company operates the largest chain of coffee stores in India. The company also has presence in real estate sector through a subsidiary, Sical Logistics. It also owns a 16.75% equity holding in information technology company, Mindtree.

If successful, Coffee Day’s IPO will be the biggest IPO by value since December 2012 – when Bharti Infratel’s raised Rs 4,155 crore. During the calendar 2015, fifteen companies have raised close to Rs 6,500 crore from primary markets so far.

Tata Motors share price surged over 7 per cent intraday on Thursday after the auto maker informed BSE that its UK based luxury car unit, Jaguar Land Rover’s retail sales rose 3 per cent to 47,634 vehicles in September 2015 over September 2014. (PTI)

Tata Motors share price surged over 8 per cent on Thursday after the auto maker informed BSE that its UK based luxury car unit, Jaguar Land Rover’s retail sales rose 3 per cent to 47,634 vehicles in September 2015 over September 2014.

The share price of Tata Motors jumped 8.06 per cent to Rs 380.70 on BSE.

JLR delivered a solid performance in the month, with sales jumping 22 per cent to 10,394 vehicles in September 2015 over September 2014. The increase reflects strong sales of the all-new Jaguar XE sports saloon in markets in which it has gone on sale since May, with China sales only starting in September and US sales set to start in 2016.

However, Land Rover retail sales fell 1 per cent to 37,240 units in September 2015 over September 2014.

Around 17.70 lakh shares exchanged hands on BSE on Thursday as against an average daily volume of 11.17 lakh shares in the past two weeks.

The ESOPs comprise of 6,46,080 shares of Reliance Capital and the balance as Phantom Shares of operating subsidiaries. The grants have been approved by the Board of Directors of Reliance Capital and the respective group companies. (PTI)

Anil Ambani-led Reliance Capital (RCL) on Thursday announced the launch of the Employee Stock Option (ESOP) Scheme 2015, subject to requisite approvals. The company proposed to grant ESOPs with a notional value of around Rs 150 crore to 250 employees across its various group units, as part of this scheme.

Under the Scheme, eligible employees will get options on RCL listed stock and / or phantom shares of its businesses. The scheme will be applicable to employees of Reliance Capital and its businesses – including Reliance Capital Asset Management, Reliance Commercial Finance, Reliance Life Insurance, Reliance Securities and Reliance General Insurance.

The ESOPs comprise of 6,46,080 shares of Reliance Capital and the balance as Phantom Shares of operating subsidiaries. The grants have been approved by the Board of Directors of Reliance Capital and the respective group companies.

It is part of Reliance Capital’s Rewards Programme aimed at retaining and incentivising key employees for their contribution to the growth and profitability of the Company.

“We are delighted to launch ESOPs that will provide long term wealth creation opportunities to key talent, linked to the growth of the company. This will not only help us reward and retain talent, but also align the employees’ sense of ownership with the business,” said Amitabh Jhunjhunwala, vice chairman, Reliance Capital.

DCB Bank share price, after falling 20 per cent in Wednesday’s trade, extended losses on Thursday too to plunge another 10+ per cent in morning trade. (Reuters)

DCB Bank share price, after falling 20 per cent in Wednesday’s trade, extended losses on Thursday too, to plunge another 10+ per cent in the morning trade.

At 10.32 am, DCB Bank share price was trading 11.05 per cent down at Rs 95. The scrip opened at Rs 98.90 and had touched a high and low of Rs 101 and Rs 92.60, respectively in trade so far. Sensex was up 0.78 per cent at 26,989.

With a view to lay the foundation for future endeavour and counter competition from MFIs who have been awarded small bank licences, DCB had announced a shift in its strategy recently from stable growth to aggressive expansion. Consequently, the bank is looking to double its branch count to around 300 in 12 months till December 2016 (existing branch count – 160). Headcount will be increased by around 50 per cent to 5,400-5,800 from existing 3,674.

However, according to market experts, investors were left disappointed by DCB Bank’s aggressive expansion plans. ICICI Securities said, with investment towards increasing scale and scope of reach, it expects the cost-to-income (CI) ratio to increase to 64 per cent in the ongoing financial year and 74 per cent in 2016-17E, post which an improvement may be seen with a decline in CI ratio – with a lag in revenue accretion until new branches achieve breakeven. The brokerage house expects profitability to remain subdued at Rs 160 crore in FY16E and Rs 117 crore in FY17E (earlier estimate Rs 251 crore).

ICICI Securities said, “RoA is expected to remain subdued at 50-60 basis points with RoE remaining below 10 per cent in FY16-17E. Hence, we downgrade the stock to ‘sell’ with a target price of Rs 92 per share (earlier Rs 152).”

Kotak Institutional Equities also called it ‘a very dangerous, unexpected and disappointing shift’ in strategy. The brokerage house downgraded DCB Bank shares to ‘sell’ from ‘buy’ and cut the target price to Rs 100 from Rs 150 earlier.

Motilal Oswal said the sudden shift in strategy is leading to sharp earnings cut and sees ROE falling below 10 per cent till FY17 – it downgraded the stock to ‘sell’ from ‘buy’.

DCB Bank reported a 10 per cent year-on-year fall in July-September net profit on higher provisions.

Tata Motors announced after market hours on Wednesday that its UK based luxury car unit, Jaguar Land Rover’s retail sales rose 3 per cent to 47,634 vehicles in September 2015 over September 2014. (Express Photo)

The BSE Sensex and NSE Nifty opened on a positive note on Thursday tracking firm Asian markets. At 9.34 am, Sensex was up 162 points at 26,942.37. Nifty was up 51 points at 8,158.90.

Here are some stocks that are likely to remain in focus today:

Tata Motors: Tata Motors announced after market hours on Wednesday that its UK based luxury car unit, Jaguar Land Rover’s retail sales rose 3 per cent to 47,634 vehicles in September 2015 over September 2014. The company sold 3,49,412 vehicles in the first nine months of 2015, in line with prior year. Jaguar delivered a solid performance in the month, with sales jumping 22 per cent to 10,394 vehicles in September 2015 over September 2014. The increase reflects strong sales of the all-new Jaguar XE sports saloon in markets in which it has gone on sale since May, with China sales only starting in September and US sales starting in 2016. Land Rover retailed 37240 units in September, down 1 per cent year-on-year compared to the same month last year.

V-Mart Retail: V-Mart Retail announced on Wendesay post after market hours, that it has opened a total of four stores, one each at Burdwan, West Bengal; Bhadrak, Odisha; Hajipur, Bihar and Sitamarhi, Bihar. With this the company has entered into the state of West Bengal taking the consolidated number of stores to 114 in 97 cities across 14 states, with 14 composite stores and 80 fashion stores with total area of approx 9.40 lakhs square feet.

Ruby Mills: Ruby Mills announced after market hours on Wednesday that it has fixed October 24 as the record date for 1:1 bonus issue.

United Bank of India: United Bank of India, the Kolkata based public sector Bank, and Kotak Securities, one of the market leaders in the equity and derivatives trading segments have launched their co-branded share trading product, specially customized for the UBI account holders. The product has been named Trio and launched under the brand U-Connect. While the focus would remain on providing online trading services to the customers, however, off-line mode will also be made available to the customers of UBI. Under this arrangement, willing customers of UBI will be offered a 3-in-1 Accounts – Saving & Demat Accounts with UBI and trading account by Kotak Securities.

Financial Technologies (FTIL): The company has concluded the sale of 11 per cent equity stake in Indian Energy Exchange (IEX) on fully diluted basis, with DCB Power Ventures and Kiran Vyapar, and accordingly 33,36,149 equity shares has been transferred to the above two purchasers from the Escrow Account with Axis Bank. With the conclusion of the above transaction, the company has completed the sale of 13.60 per cent stake in IEX, on fully diluted basis.

Mindtree: The company may announce its Q2 results on Thursday. For the first quarter ended June 2015, the company posted consolidated net profit of Rs 138.20 crore, up 7.38 per cent, against Rs 128.70 crore in the sequential quarter ended March 2015.