 "Coffee Day Enterprises raises Rs 334 cr from 17 anchor investors")
Coffee Day Enterprises on Tuesday raised Rs 334 crore from a number of anchor investors, including BlackRock India, ICICI Prudential, Reliance Life Insurance Company, Merrill Lynch Capital and Swiss Finance Corporation.
Coffee Day Enterprises runs the Café Coffee Day chain of restaurants.
The company’s Rs 1,150-crore initial public offering (IPO), the biggest since December 2012, will open for subscription on Wednesday.
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“At a meeting on Tuesday, the IPO committee of the board of directors finalised the allocation of 10.38 million equity shares to anchor investors at Rs 322,” read a company release.
Coffee Day Enterprises has priced its IPO at Rs 316-328 a share. The demand in the anchor portion sets the tone for the IPO, say market experts.
Merrill Lynch, Axis Mutual Fund and Platinum Asia Fund received some of the highest allotments under the anchor book, the release showed.
Ahead of an IPO, a company issues shares to anchor, or cornerstone, investors to enhance investor confidence. According to Securities and Exchange Board of India regulations, anchor investors can be allotted up to 60 per cent of shares reserved for institutional investors in an IPO. Typically, 50 per cent of an IPO is reserved for institutional investors, also known as qualified institutional buyers. The allotment to anchor investors is on a discretionary basis. The investors, however, have to observe a lock-in period of 30 days from the date of allotment.
The Coffee Day Enterprises IPO is managed by six investment bankers, including Kotak Mahindra, Citigroup Global and Morgan Stanley.
