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India’s largest coffee chain, Cafe Coffee Day (CCD), has filed a draft offer documents with capital market regulator SEBI for a ₹1,150-crore initial public offer.
Coffee Day Enterprises, the company that owns CCD, intends to use ₹633 crore to repay debts while ₹288 crore will be used to set up a new cafe network, outlets and kiosks. In addition, it will refurbish the existing cafe network and vending machines, install a new coffee roasting facility, manufacture and assemble vending machines, and have an integrated coffee and tea packing facility, according to documents filed with SEBI.
The rest will of the money be used for corporate purposes.
VG Siddhartha, the lead promoter of CCD, who is also Chairman and MD, holds a 54.78 per cent stake. Infosys co-founder and former CEO Nandan Nilekani holds 1.77 per cent. Private equity firm KKR, with a 3.43 per cent stake, will continue to stay invested in the company.
The coffee shop brand, which opened its first outlet in Bengaluru in 1996, has a network of 1,472 café outlets spread across 209 cities as of December 2014, according to consultant Technopak.
For the first nine months ending December 2014, the company posted a loss of ₹11 crore on a total income of ₹882 crore.
The public offer is being managed by Kotak Investment Banking, Citigroup, Morgan Stanley, Axis Capital, Edelweiss, and YES Bank.
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