Coffee Day's IPO Gets Sebi Nod

Market regulator Sebi has given nod to Coffee Day Enterprises, which runs Cafe Coffee Day, to launch its initial public offering (IPO), according to the bankers. The country's largest coffee chain is planning to raise about Rs.1,150 crore through the IPO.
Sebi's IPO approval has a validity of one year. So far in 2015, 10 companies have raised about Rs.4,700 crore from IPOs.
According to the draft prospectus, the company plans to use Rs.632 crore to repay loans and the ` rest to open stores.
Kotak Mahindra Capital, Citigroup Global Markets and Morgan Stanley are the bankers for the issue, while Cyril Amarchand Mangaldas is the legal counsel to the company.
VG Siddhartha, the main promoter, who is also chairman and MD, holds 54.78% stake in the company. Promoters together hold 92.75% in the company.Among the other major shareholders, Kohlberg Kravis Roberts & Co has 3.43% and Nandan Nilekani, Infosys co-founder and former chief of UIDAI, holds 1.77% in the company.


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