Bangalore-based Coffee Day Enterprises, the parent company of Cafe Coffee Day retail chain, is diluting (issuing fresh shares) 17.55 per cent stake in the company for Rs 1,150 crore. Coffee Day Enterprises is aiming for a valuation of Rs 6,750 crore through India's biggest initial public offer (IPO) in three years. CCD, which opened its first store in 1996, is India's biggest food and beverages chain with 46 per cent market share as of December 2014, according to Technopak consultancy.
Here are 10 things to know before investing in Coffee Day IPO:
1) Coffee Day Enterprises is selling shares (face value of Rs 10) in a price band of Rs 316 to Rs 328 in its offer than opens on October 14 and closes on October 16. Investors can buy shares in a lot size of 45. Trading will begin on November 2.
Coffee Day IPO is not of the CCD chain. It is of the holding company. 40 odd businesses. Debt laden. Why pay Starbucks money for CCD Coffee?— R. Balakrishnan (@BalakrishnanR) October 14, 2015
CCD shud b askd how many of 1538 cafes wer breaking even as of last month? 80:20 rule? Revnue needed 20k/day agnst 13k/d 2 BE wil take 5 yrs— Ambareesh Baliga (@ambareeshbaliga) October 7, 2015