Coffee Day to raise Rs 1,150 cr

Coffee Day to raise Rs 1,150 cr

In the biggest ever initial public offering in nearly three years, Coffee Day Enterprises is planning to raise up to Rs 1,150 crore. The price band for the issue has been fixed from Rs 316 to Rs 328 per share, and the issue will open from October 14.

“The proceeds from the IPO will mainly be used towards repaying debt as well as opening of new stores,” Coffee Day Enterprises chairman VG Siddhartha said.

Coffee Day Enterprises is the parent company of the Coffee Day Group, which currently operates in businesses such as coffee, development and management of IT-ITES technology parks, providing integrated logistics solutions, financial services, hospitality and investing in technology companies.

The company opened its first Café Coffee Day outlet in Bengaluru in 1996, and has established the largest footprint of café outlets in India as of December 31, 2014, with a network of 1,538 café outlets spread across 219 cities, under the established and recognised brand name Café Coffee Day as of June 30, 2015.

The company also has other subsidiaries including Sical Logistics and Way2Wealth Securities. The global coordinators and book running lead managers to the issue are Kotak Mahindra Capital, Citigroup Global Markets India and Morgan Stanley India.

Asked on whether the company would look at shutting some of its outlets, Siddhartha said going forward, the company will close only a small percentage of its stores.

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