PE-backed Coffee Day to raise $177m in India IPO

The company will issue 35 million shares at INR328 apiece, according to its prospectus. The IPO will involve only newly issued shares, with the company's PE backers KKR, New Silk Route Partners (NSR) and Standard Chartered Private Equity (SCPE) set to retain their stakes.

Cafe Coffee Day announced the offering in June; more than half the proceeds will be used to repay debt, with the rest going toward opening new branches, manufacturing vending machines, refurbishing existing facilities and building a new coffee production plant.

The price represents the top end of the indicative range for the IPO that closed earlier this month, oversubscribed 1.81 times. Qualified institutional buyers showed the most interest, with their reserved shares 4.4 times subscribed. The slowest response was by non-institutional investors, who subscribed their portion 53%.

Cafe Coffee Day operates 1,472 coffee shops across 209 cities in India, with additional assets including 28,777 vending machines and 424 retail outlets selling coffee powder. It controls 48% of the chained café outlet market in India and has a footprint nearly four times the size of its four closest competitors.

For the year ended March 2014, the company reported revenue of INR23.53 billion, up from INR21.49 billion the previous year. It reported a net loss of INR1.38 billion, an increase from the previous year's net loss of INR738.9 million.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Save this article  
• Send to  

• Topics
• South Asia
• Consumer
• Investments
• Exits
• India
• Consumer
• KKR
• NSR New Silk Route Partners
• Standard Chartered Private Equity
• IPO
• Exit