Found this on a moneycontrol analysis:

In Financial Years 2012, 2013 and 2014 and the nine month period ended December 31, 2014, 36, 42, 44, and 175 cafés were closed down. These closures were owing to a variety of business related factors such as non-renewal of leases, low revenue generation from outlets and unfavourable location of outlets. CCD expects to continue to close anywhere between 25 to 40 outlets every year.

http://www.moneycontrol.com/news/ipo-upcoming-issues/cafe-coffee-day-10-things-to-know-about-its-parent-ipo_3483441.html

I am wondering if the 175 cafe closure at the end is important. In effect, they are opening 215 cafes with the IPO proceeds (after they closed 175 in a year :P).

Discl.: Based on what I am reading here and other sites, I will definitely not invest in a loss-making company when there are far better companies in India that will benefit when the economy turns around.

Dear Rupesh,

Thats rear view investing...doesnt work in real markets.

Net cash flow is negative due to aggressive repayment of loans ahead of date.

Tax paid is low in past ( point agreed, will need to check why ) but for q1 they have paid 4.5 cr of tax on 18.5cr PBT, which is 24.3%.

As company becomes debt free, interest coverage ratio will be infinite ! Also, with debt payback and increased profitability, return ratios will see significant upside.

My take is simple:

For 300 cr you own 2.3 million tpa (2,300,000,000 kg per annum)
for 30 cr you own 230,000,000 kg per annum
for 3 cr you own 23,000,000 kg per annum
for 30 lacs you own 2,300,000 kg per annum
for 3 lacs you own 230,000 kg per annum

So if you buy 3 lacs worth of shares, you personally own a 2,30,000 kg per annum capacity fully integrated cement plant personally ( with captive mines and power plant ) ! that has to be worth owning and cherishing !

http://myinvestmentideas.com/2015/10/coffee-day-enterprises-ipo-should-you-invest/

Good analysis above. Not analyzed the numbers myself but the link says company has been in net loss over the past 3 years. Assuming the numbers are correct, no way I'll risk my money in a unprofitable business again! + Dividend is out of the picture.

People who want to make highly speculative bets can surely go ahead and invest!

I'll stick to Charlie Munger's philosophy -
"It is remarkable how much long-term advantage people like us have gotten by trying to be consistently not stupid, instead of trying to be very intelligent. There must be some wisdom in the folk saying, ‘It’s the strong swimmers who drown.’