The initial public offering (IPO) of Coffee Day Enterprises was subscribed 0.13 times on the first day of its three-day offering.
Qualified institutional bidders (QIBs) bid for 12.19 lakh shares, against 73.80 lakh shares reserved for the category, data showed. The non-institutional category comprising high net worth individuals (HNIs) bid for 1.65 lakh shares, against reservation of 53.87 lakh shares. Retail investors subscribed 20.03 shares, against 1.25 crore shares reserved for the category.
The Bengaluru-based company had raised around Rs 334 crore on Tuesday through a pre-IPO placement to anchor investors. A little over one crore shares were allotted to 17 institutional investors at a price of Rs 322 apiece. List of anchor investors included Blackrock, Government Pension Fund Global, ICICI Prudential Mutual Fund, Merrill Lynch, Swiss Finance Corp and Axis Mutual Fund.
Coffee Day Enterprises plans to raise Rs 1,150 crore through the issue, making it the largest IPO in nearly three years. The company has fixed a price band of Rs 316-328 per share. Kotak Investment Banking, Citigroup, Morgan Stanley, Axis Capital, Edelweiss and Yes Bank are the lead book running managers for the issue.
Coffee Day Enterprises is the parent company of Coffee Day Group and the company operates the largest chain of coffee stores in India.
The company also has presence in real estate sector through a subsidiary, Sical Logistics. It also owns a 16.75% equity holding in information technology company, Mindtree.