 "Coffee Day IPO subscribed 1.8 times")
The Rs 1,150-crore initial public offering (IPO) of Coffee Day Enterprises, the company that operates Cafe Coffee Day chain of restaurants, received 1.8 times subscription. Bulk of the bids came from institutional investors, while individual investors' portion remained under-subscribed.
The qualified institutional buyer segment was subscribed 4.4 times, retail portion was subscribed 90 per cent, wealthy investor segment was subscribed 53 per cent, and employee quota, too, remained under-subscribed at 84 per cent.
Coffee Day had priced its IPO in the range of Rs 316-328 a share. On Thursday, the company had raised Rs 334 crore from anchor investors by selling 10.4 million shares at Rs 322 apiece, lower than the top-end of the price band.
Anchor investors include BlackRock India, ICICI Prudential, Reliance Life Insurance Company, Merrill Lynch Capital and Swiss Finance Corporation.
Coffee Day Enterprises has hired six merchant bankers — Citigroup Global Markets, Kotak Investment Banking, Morgan Stanley, Axis Capital, Edelweiss Financial Services, and Yes Bank — to manage the share sale.
The amount raised by the company would be the highest amount raised from IPOs in four years. The IPO is also the country's biggest listing since Bharti Infratel's $751-million offering in December 2012. Low-cost carrier Indigo's parent company Interglobe Aviation's IPO is up next later this month and is expected to fetch about Rs 2,500 crore.
Coffee Day Enterprises is the parent company of Coffee Day Group and operates coffee business through a subsidiary, Coffee Day Global, and its subsidiaries. The company also has diversified business interests through its subsidiaries across segments such as logistics, financial services, hospitality, and technology parks. V G Siddhartha is the chairman of Coffee Day Enterprises.
The qualified institutional buyer segment was subscribed 4.4 times, retail portion was subscribed 90 per cent, wealthy investor segment was subscribed 53 per cent, and employee quota, too, remained under-subscribed at 84 per cent.
Coffee Day had priced its IPO in the range of Rs 316-328 a share. On Thursday, the company had raised Rs 334 crore from anchor investors by selling 10.4 million shares at Rs 322 apiece, lower than the top-end of the price band.
Anchor investors include BlackRock India, ICICI Prudential, Reliance Life Insurance Company, Merrill Lynch Capital and Swiss Finance Corporation.
Coffee Day Enterprises has hired six merchant bankers — Citigroup Global Markets, Kotak Investment Banking, Morgan Stanley, Axis Capital, Edelweiss Financial Services, and Yes Bank — to manage the share sale.
The amount raised by the company would be the highest amount raised from IPOs in four years. The IPO is also the country's biggest listing since Bharti Infratel's $751-million offering in December 2012. Low-cost carrier Indigo's parent company Interglobe Aviation's IPO is up next later this month and is expected to fetch about Rs 2,500 crore.
Coffee Day Enterprises is the parent company of Coffee Day Group and operates coffee business through a subsidiary, Coffee Day Global, and its subsidiaries. The company also has diversified business interests through its subsidiaries across segments such as logistics, financial services, hospitality, and technology parks. V G Siddhartha is the chairman of Coffee Day Enterprises.