Coffee Day Enterprises IPO sees 75% subscription on Day 2

Mumbai: The initial public offer of Coffee Day Enterprises, which runs Cafe Coffee Day (CCD) chain, was subscribed 75 percent on the second day of offer Thursday.

The Rs 1,150-crore IPO received bids for 1,93,74,885 shares against the total issue size of 2,58,14,198 shares, according to data available with the NSE till 1700 hours.

The portion reserved for qualified institutional buyers (QIBs) was subscribed 1.98 times while the category for non-institutional investors saw 7 percent subscription, according to BSE data.

Retail investors pie was subscribed 33 percent.

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 will 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 will close tomorrow.

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 MD, holds 54.78 percent stake in Coffee Day.

The overall shareholding of promoters is 92.74 percent.

In March, Coffee Day raised Rs 100 crore in a pre-IPO funding from Nandan Nilekani and Rare Enterprises (owned by Rakesh Jhunjhunwala 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.