Leading coffee shop chain operator Coffee Day Enterprises has filed its papers with regulator Sebi for an initial public offer ( IPO) to raise an estimated Rs 1,150 crore.
The company, which runs the country's biggest coffee chain under the brand Cafe Coffee Day (CCD) and has got private equity giants like KKR, Stanchart PE and New Silk Route as its investors, has reserved Rs 15-crore worth shares for staff.
As per the draft red herring prospectus (DRHP) filed with Sebi for the public offer, the company proposes to list its shares on the BSE and the NSE.The main promoter, V G Siddhartha, also chairman and MD, holds 54.78 per cent stake, while all promoters together have 92.74 per cent holding in the company.
Among other major shareholders, KKR has got 3.43 per cent and Nandan Nilekani, Infosys co-founder and former chief of UIDAI, has 1.77 per cent stake.
As per the DRHP, the company plans to raise up to Rs 1,150 crore through the public offer.
The global coordinators and book running lead managers to the issue are Kotak Mahindra Capital, Citigroup Global Markets India and Morgan Stanley India Company Private Limited. The book running lead managers to the issue are Axis Capital, Edelweiss Financial Services Limited and YES Bank Limited.
The shares would be offered to public investors through a Book Building Process wherein 50 per cent of the net issue would be allotted on a proportionate basis to qualified institutional investors, while the company may allocate up to 60 per cent of the QIB portion to anchor investors on a discretionary basis. One third the anchor investor portion will be reserved for domestic mutual funds.
All potential investors, other than Anchor Investors, can participate in this issue through an application supported by blocked amount (ASBA) process providing details of their respective bank account.
QIBs (except anchor investors) and non-institutional Bidders are mandatorily required to utilise the ASBA process to participate in this Issue.
Coffee Day Enterprises is the parent company of the Coffee Day Group and operates coffee business through a subsidiary, Coffee Day Global Limited (earlier known as Amalgamated Bean Coffee Trading Company Limited) and its subsidiaries.
Coffee Day Global Limited had a total income of Rs 1,154 crore and operating profit of Rs 189 crore in fiscal 2013-14.
In addition to having the largest chain of cafes in India, it operates a vertically integrated coffee business which ranges from procuring, processing and roasting of coffee beans to retailing of coffee products across various formats.
It is the pioneer in the coffee shop chain business in India and opened its first CCD outlet in Bengaluru in 1996. It now has a network of nearly 1,500 outlets and commands a market share of 46 per cent with a network nearly four times larger than the cumulative footprint of the next four rivals.