Coffee Day Enterprises IPO subscribed 75% on Day 2

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Updated: October 16, 2015 10:54:22 AM

The initial public offering (IPO) of Coffee Day Enterprises gained traction on Thursday, with the issue clocking 75% subscription on the second day of the book building.

The initial public offering (IPO) of Coffee Day Enterprises gained traction on Thursday, with the issue clocking 75% subscription on the second day of the book building.

Bids poured in from qualified institutional bidders (QIBs), exhibiting confidence in the issue. Institutional investors bid 1.45 crore shares against 73.80 lakh reserved for the category, data showed. The book was subscribed nearly two times.

The non-institutional category comprising high networth individuals (HNIs) bid for 3.89 lakh shares against 53.87 lakh shares on offer. Retail investors subscribed 41.93 shares against an offering of 1.25 crore shares.

On Tuesday, the Bengaluru-based company had raised around R334.27 crore through a pre-IPO placement to anchor investors.

ccd-ipo

A little over 1.03 crore shares were allotted to 17 institutional investors at a price of  R322 apiece. List of anchor investors included Blackrock, Government Pension Fund Global, ICICI Prudential Mutual Fund, Merrill Lynch, Swiss Finance Corp and Axis Mutual Fund.

The public issue, which closes on Friday, is priced at R316-328 per piece. The company aims to raise a total of R1,150 crore from public investors to pay back existing debts and for general corporate purposes. The company aims to retire R632.8 crore of its total debt, according to information made available in the draft prospectus.

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 the real estate sector through a subsidiary, Sical Logistics. It also owns a 16.75% equity holding in Mindtree.

If successful, Coffee Day’s IPO will be the biggest by value since December 2012 – when Bharti Infratel had raised Rs 4,155 crore. So far in 2015, 15 companies have raised close to R6,500 crore from primary markets.

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