Cafe Coffee Day goes public, to launch biggest IPO in 3 years next week

Zee Media Bureau

New Delhi: Coffee Day Enterprises Ltd , the holding company of the Cafe Coffee Day (CCD) chain of restaurants will launch its Rs 1,150-crore initial public offering (IPO) on 14 October. The firm aims to raise up to $176 million in the country's biggest IPO in nearly three years.

India has seen fewer IPOs in the last few years because of volatile markets and slowing economic growth, and the response of foreign and local investors to this offering will be a test of appetite for new issues in the current unsettled climate.

The company has fixed a price band of Rs 316-328 for the issuance, said two people aware of the development on condition of anonymity.

Indian companies have raised about $1.1 billion via IPOs so far in 2015, higher than $223 million for all of 2014 and $285 million in 2013, but much lower than $3.5 billion raised in 2010.

Cafe Coffee Day has more than 1,500 outlets in India and 14 overseas outlets across Austria, the Czech Republic and Malaysia.

With Agency Inputs