Coffee shop chain operator Cafe Coffee Day Enterprises is believed to have fixed the price band at Rs 316-328 for its initial share sale.
The operator of Cafe Coffee Day shops has filed papers with Sebi for an IPO to raise an estimated Rs 1,150 crore which would be the largest share sale this year so far.
Sources said the price band for the IPO has been fixed at Rs 316-328 and the issue is expected to open on October 14. This would also be the largest initial share sale by any company so far this year, they added.
The company, which runs the country's biggest coffee chain under the brand Cafe Coffee Day (CCD), has got private equity giants like KKR, Stanchart PE and New Silk Route as its investors and has reserved Rs 15-crore worth shares for staff. V G Siddhartha, who is the main promoter as well as 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 3.43 per cent and Nandan Nilekani, Infosys co-founder and former chief of UIDAI, has 1.77 per cent stake.
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 would be reserved for domestic mutual funds. Coffee Day Enterprises is the parent company of the Coffee Day Group and operates coffee business through a subsidiary, Coffee Day Global Ltd (earlier known as Amalgamated Bean Coffee Trading Company Limited) and its subsidiaries.
Coffee Day Global Ltd 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.