The Rs.1,150-crore initial public offering (IPO) of Coffee Day Enterprises sailed through on Friday -the last day of the issue -helped by the appetite shown by institutional investors. Rich and retail investors categories, however, went undersubscribed, according to data from stock exchanges at 6:00 pm.
The issue, the largest in three years, was subscribed 1.81 times with institutional investors putting bids at 4.38 times the shares set aside for them.HNIs and retail investors categories were subscribed 0.53 and 0.82 times, respectively.
Coffee Day is selling shares in the public issue at Rs.316-328 a share. The company will use the proceeds to partly retire its debt.
The promoter's holding in the company will come down to 52.6% from 63.3% after this issue.Coffee Day posted a net loss of Rs.10.9 crore and consolidated revenue of Rs.875 crore for the nine months ended December 31.
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