Mumbai: Coffee Day Enterprises Ltd (CDEL), the holding company of the Cafe Coffee Day chain of cafes, on Tuesday raised 334.2 crore from anchor investors, including both foreign and domestic institutional investors, according to the company’s filings with the stock exchanges.

The shares were issued to these investors at 322 apiece. Last week, the company announced a price band of 316-328 for its initial public offering (IPO), which opens on 14 October. The issue closes on 16 October.

The firm, founded by V.G. Siddhartha, plans to raise 1,150 crore, including the anchor investor allocation, also known as the anchor book.

The anchor book is that portion of the IPO which bankers can allot to institutional investors on a discretionary basis. Anchor book subscription opens a day before the launch of an IPO and act as an indicator of institutional investor interest.

“There was almost a 2.5 times demand for the anchor book. There was enough demand to cover the anchor book at the upper end of the price band too, but the management took a conscious call to allocate the shares at the middle of the price band to leave an upside for investors," said a person aware of the development, requesting anonymity.

Subscribers to the anchor book include FIIs such as Merrill Lynch, Platinum Asset Management, Jupiter Fund Management Plc and BlackRock. DIIs such as ICICI Prudential Mutual Fund, Axis Mutual Fund, Reliance Life Insurance and private equity fund Faering Capital have also picked up shares.

Kotak Mahindra Capital Co. Ltd, Morgan Stanley India Co. Pvt. Ltd, Citigroup Global Markets India Pvt. Ltd, Axis Capital Ltd, Yes Bank Ltd and Edelweiss Financial Services Ltd are managing the IPO.

Private equity firms KKR India Advisors, New Silk Route PE Asia and Standard Chartered Private Equity invested $149.07 million in the holding company in February 2010, according to VCCEdge, which tracks investments.

CDEL owns Coffee Day Global Ltd (formerly known as Amalgamated Bean Coffee Trading Co. Ltd), the company that runs the cafe chain.

CDEL had 1,538 stores as on 30 June with 61% of them located in seven cities—Delhi, Mumbai, Bengaluru, Chennai, Pune, Kolkata and Hyderabad.

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