Coffee Day Enterprises Ltd, known as the Cafe Coffee Day (CCD) brand among other businesses, has received the green signal from securities market regulator Securities & Exchange Board of India (SEBI) to float its initial public offer (IPO). India’s biggest coffee chain firm had filed its draft red herring prospectus (DRHP) with Sebi through its lead merchant banker Kotak Mahindra Capital Company Limited on 26 June this year.
The Bangalore-based company that had roped in a string of private equity backers, including KKR, is looking to raise Rs 1,150 crore ($181 million) in its IPO. This would make it one of the largest IPOs in the recent times and would top the public issue of Inox Wind, that went public in March this year.
Budget carrier IndiGo and drugmaker Alkem have also filed documents for large public issues. It had filed in June.
The company raised Rs 100 crore from a group of private investors including Infosys co-founder Nandan Nilekani, ace private investors Rakesh Jhunjhunwala and Ramesh Damani. Nilekani led the round with Rs 75 crore.
Coffee Day Enterprises 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 2013-14 fiscal. Out of the capital raised through the issue, the parent company plans to utilise nearly Rs.632 crore to pay off debt and the remaining to open new stores, set up coffee bean roasting plants and make vending machines, the proposal said.