Coffee Day eyes US$1b valuation with biggest Indian IPO in 3 yrs
[MUMBAI] India's Coffee Day Enterprises, which runs the nation's biggest coffee chain, said it is eyeing a valuation of as much as 67.5 billion rupees (S$1.46 billion) based on the issue price of its initial public offering next week that will be the biggest in the local market in nearly three years.
Coffee Day, which is selling new shares in the IPO, will dilute as much as 17.55 per cent on a post-issue basis to raise up to 11.5 billion rupees, according to a presentation made at a company news conference on Wednesday.
The company will sell 3.4 billion rupees worth of shares to cornerstone investors ahead of the IPO, managers to the IPO said. It is selling shares in a price range of 316 to 328 rupees in the issue that will open on Oct 14 and close on Oct. 16.
Coffee Day Enterprises, which counts private equity KKR and New Silk Route among its investors, runs the Cafe Coffee Day cafes with more than 1,500 stores in India and 14 overseas.
It also owns about 16 per cent of software services exporter MindTree Ltd and about 53 per cent in Sical Logistics Ltd.
Cafe Coffee Day competes with Starbucks Corp, Whitbread Plc's Costa Coffee, and Barista among others in a primarily tea-drinking country that has in recent years seen a surge in coffee consumption.
REUTERS
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Energy & Commodities
BHP’s biggest rivals sit on the sidelines of Anglo M&A drama
ExxonMobil to take 18 to 24 months to hit full stride with Pioneer purchase
Oil settles down on US jobs data, steepest weekly loss in three months
Glencore Group nears deal for Shell’s Singapore oil refinery
Opec+ may need to tackle oil capacity conundrum next month
Gold flat ahead of US payrolls data, set for second weekly drop