Coffee Day IPO subscribed 1.8 times

Bengaluru, Oct 16 (IANS) The Rs.1,150 crore Coffee Day Enterprises Limited (CDEL) IPO, India’s largest since the Rs.4,500 crore Bharti Infratel Ltd issue in December 2012 has been subscribed 1.8 times by the time it closed at 5 p.m. on Friday, sources said.

According to the information available on bourses BSE and NSE, Qualified Institutional Buyers (QIB) bought the issue 4.38 times while High Networth Individual (HNI) bought it 0.53 times, sources said.

CDEL allotted 1.03 crore equity shares aggregating to Rs.334 crore for 17 anchor investors, while retail investors and employees bought the issue 0.86 times and 0.82 times, sources said.

The IPO reserved equity shares aggregating to Rs.15 crore for eligible employees.

The company offered equity shares with a face value of Rs.10 each for cash with the share premium aggregating up to Rs.1,150 crore.

The price band for the issue, which opened on Wednesday, was fixed at Rs.316-Rs.328 a share.

CDEL operates the largest domestic coffee chain in India under the brand name Cafe Coffee Day with 1,538 outlets in 219 cities.

The IPO was handled by Yes Bank, Edelweiss, Axis Capital, Morgan Stanley, Citigroup and Kotak Investment Banking.

The proceeds from the issue will fund Cafe Coffee Day outlet expansion, repay and prepay loans of parent company CDEL and subsidiaries and meet general corporate needs.

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