Coffee Day Enterprises, the company that owns and operates India’s largest coffee retail chain, Cafe Coffee Day, on Tuesday raised Rs 334.27 crore by issuing shares to institutional investors.
The Bengaluru-based company issued a little more than 1.03 crore shares to anchor investors at Rs 322 apiece, a stock exchange announcement said.
A total of 17 domestic and foreign institutions participated in the pre-placement offer. National Westminster Bank (10.57 lakh shares), Merrill Lynch Capital Markets Espana (19.47 lakh shares), Axis Mutual Fund (11.64 lakh shares), ICICI Prudential through its various schemes (11.64 lakh shares), and Platinum Asia Fund (14.56 lakh shares) were among them, data showed.
The public issue, which opens on Wednesday and closes on Friday, is priced at Rs 316-328 per piece. The company aims at raising a total of Rs 1,150 crore to pay back existing debts and for general corporate purposes. The company plans to retire Rs 632.8 crore of its total debt, according to information made available in the draft prospectus.
Kotak Investment Banking, Citigroup Global Markets, Morgan Stanley (India), Axis Capital, Edelweiss Financial Services and YES Bank are financial advisors to the issue.
Coffee Day Enterprises is the parent company of the Coffee Day Group and operates coffee business through a subsidiary, Coffee Day Global, and its subsidiaries. The company also has presence in the real estate sector through a subsidiary, Sical Logistics. It also owns 16.75% equity holding in Mindtree.
If successful, Coffee Day’s IPO will be the biggest one by value since December 2012 – when Bharti Infratel had raised Rs 4,155 crore.