The IPO of coffee king VG Siddhartha’s Coffee Day Enterprises Limited (CDEL) was subscribed 73% on second day of bidding. The issue is to close on 16 October. Total 25.8 million shares are up for sale in the range of INR316-328 per share.
Kotak Mahindra Capital Company, Citigroup Global Markets India, Morgan Stanley India, Axis Capital, Edelweiss Financial Services and YES Bank are managing the issue.
As per NSE data, the Qualified Institutional Buyer (QIB) segment got subscribed 1.98 times (nearly two times) while employee reserved portion got 45% subscription. Total 19.4 million bids have been received against 25.8 million offered.
|Coffee Day Enterprises IPO Subscription Data|
|Shares Offered / Reserved||7,380,654||5,387,658||12,571,203||474,683||25,814,198|
|Day 1 (Oct 14)||0.1700||0.0300||0.1600||0.0800||0.1300|
|Day 2 (Oct 15)||1.9800||0.0700||0.3300||0.4500||0.7500|
|No of shares bid||14,578,470||389,160||4,193,595||213,660||19,374,885|
Foreign institutional investors such as Platinum Asset Management, Merrill Lynch, Jupiter Fund Management Plc and BlackRock and domestic investors including ICICI Prudential Mutual Fund, Axis Mutual Fund, Reliance Life Insurance and Faering Capital were among the anchor investors to the IPO. The company raised INR3.342 billion from anchor investors by selling 10.4 million shares at INR322 per share on Tuesday.
The company is backed by an impressive list of investors including Nandan Nilekani, Ramesh Damani and Rakesh Jhunjhunwala. Promoter, Chairman & Managing Director VG Siddhartha holds 54.78% stake in Coffee Day and none of the investors are cashing out from this public offer.
Though most of the proceeds will be utilized for prepayment of loans, the rest will be used for financing coffee business subsidiary, setting up new outlets and kiosks, manufacturing and assembling vending machine, revamping existing outlets and setting-up new coffee roasting plant facility.
Coffee Day IPO is the biggest in India in the last three years. Indian market has yet another colossal IPO to experience: InterGlobe Aviations’ INR25 billion offer while many small ones like Parag Milk Foods, Maini Precision Products, GVR Infra Projects, Quick Heal and Sandhar Technologies are in the pipeline.