BackCafe Coffee Day parent to launch IPO on 14 October
The firm has fixed a price band of `316-328 for its `1,150-crore issuance
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Mumbai: Coffee Day Enterprises Ltd (CDEL), the holding company of the Cafe Coffee Day (CCD) chain of restaurants founded by V.G. Siddhartha, will launch its ₹ 1,150-crore initial public offering (IPO) on 14 October.
The firm has fixed a price band of ₹ 316-328 for the issuance, said two people aware of the development on condition of anonymity.
On 25 September, Mint reported that the firm was planning to launch its IPO around mid-October.
Market regulator Securities and Exchange Board of India’s (Sebi) had approved the IPO plan in August.
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.
According to the draft papers filed with Sebi, KKR holds a 3.43% stake in CDEL.
CDEL owns Coffee Day Global Ltd (formerly known as Amalgamated Bean Coffee Trading Co. Ltd), the company that runs the cafe chain.
The firm plans to use the IPO proceeds to set up new outlets and kiosks, refurbish existing outlets, manufacture and assemble vending machines and set up a new coffee roasting plant, along with a coffee and tea-packing facility.
Under its flagship format of Café Coffee Day, CDEL operates 1,423 outlets across 209 cities in India and 16 international outlets across Austria, the Czech Republic and Malaysia.
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