CCD's Rs 1,150 crore IPO opens on October 14

Coffee Day Enterprises, the owners of Cafe Coffee Day (CCD) chain, will launch its maiden public offering on October 14 to raise Rs.1,150 crore, making it the largest IPO in the country since December 2012. With the company diluting a little over 17.5% stake, the IPO price translates into a valuation of close to Rs.6,500 crore, or a little over $1 billion. The shares will be sold in the price band of Rs 316-328.
Of the total offering, Coffee Day is set to allot shares worth Rs 340 crore to a group of investors, called anchor investors, just ahead of the IPO which closes on October 16. Private equity major KKR, along with New Silk Route, hold shares in the company that runs over 1,500 coffee shops around India and some more abroad.
Coffee Day shares will be listed on the BSE and NSE.
The issue is being managed by Kotak Mahindra Capital, Citigroup Global Markets, Morgan Stanley , Axis Capital, Edelweiss Financial Services and Yes Bank.

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