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Coffee Day Enterprises’ IPO application has been cleared by the capital market regulator SEBI. The coffee chain is owned by VG Siddhartha under the brand name Café Coffee Day.
Of the likely maximum gross issue proceeds of ₹1,150 crore, the company plans to finance its coffee business besides repaying loans.
It plans to deploy ₹87.71 crore to set up new café network outlets and Coffee Day Xpress kiosks. The plan is to set up 216 café network outlets and 105 Xpress kiosks over FY16 and FY17.
A spend of ₹97.36 crore for the manufacture and assembly of 8,000 vending machines (in FY16 and FY 17) has been set aside.
For refurbishment of the existing Café Network outlets (240 in number) and vending machines (7,000 in number), a sum of ₹60.58 crore has been earmarked, while ₹41.85 crore would be spent for the setting up of a new coffee roasting plant facility.
The employee reservation portion in the IPO is upto ₹15 crore. The shares would be listed on the BSE and the NSE.
Kotak, Citi and Morgan Stanley are the global co-ordinators and the book running lead managers while Axis Capital, Edelweiss and YES Bank are book-running lead managers to the issue.
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