Big Bucks expected as Cafe Coffee Day launches its IPO
Coffee Day Enterprises Ltd , the holding company of the Cafe Coffee Day (CCD) chain of restaurants will launch its Rs 1,150-crore initial public offering (IPO) on 14 October. The firm aims to raise up to $176 million in the country’s biggest IPO in nearly three years.
India has seen fewer IPOs in the last few years because of volatile markets and slowing economic growth, and the response of foreign and local investors to this offering will be a test of appetite for new issues in the current unsettled climate.
The company has fixed a price band of Rs 316-328 for the issuance, said two people aware of the development on condition of anonymity.
Coffee Day Enterprises Ltd, which competes with Starbucks Corp among others in India, is backed by private equity firm KKR & Co. It will launch its share sale on Oct. 14, according to its IPO prospectus seen on Tuesday.The cafe operator opened its first shop in 1996 in the tech hub of Bangaluru, and quickly expanded across the country as urban consumers sought out spaces to socialise in overcrowded, traffic-congested cities.