Coffee Day Enterprises IPO subscribed 13% on Day 1

The Rs 1,150-crore initial public offering (IPO) of Coffee Day Enterprises , which runs Cafe Coffee Day (CCD) chain, was subscribed 13 per cent on the first day of issue on  Wednesday.

The IPO of Coffee Day Enterprises received bids for 34,24,275 shares against the total issue size of 2,58,14,198 shares on offer, receiving 13 per cent subscription, data available with the NSE till 1700 hours showed.

The portion reserved for qualified institutional buyers (QIBs) was subscribed 17 per cent, while the category for non-institutional investors saw 3 per cent subscription, as per BSE data.

Retail investors pie was subscribed 16 per cent. Coffee Day Enterprises has raised over Rs 334 crore from anchor investors.

The company plans to mop up Rs 1,150 crore through the IPO, which would be the biggest in the country in nearly three years.

The company, which competes with global giant Starbucks in the fast-growing Indian consumer market, has fixed a price band of Rs 316-328 per share for its IPO.

The share sale would close on October 16.

Kotak Investment Banking, Citigroup, Morgan Stanley, Axis Capital, Edelweiss and Yes Bank are handling the IPO of Coffee Day Enterprises, whose shareholders include private equity giants KKR and New Silk Route. Siddhartha, the main promoter as well as chairman and managing director, holds 54.78 per cent stake in Coffee Day.

The overall shareholding of promoters is 92.74 per cent. In March, Coffee Day raised Rs 100 crore in a pre-IPO funding from Nandan Nilekani and Rare Enterprises (owned by Rakesh Jhunujunwala and Ramesh Damani), among others.

Coffee Day Enterprises is the parent company of Coffee Day Group and operates coffee business through a subsidiary, Coffee Day Global Ltd (earlier known as Amalgamated Bean Coffee Trading Company Limited) and its subsidiaries.