Coffee Day Enterprises Rs 1,150-cr IPO over-subscribed

In the biggest IPO in nearly three years, leading coffee chain operator Coffee Day Enterprises' Rs 1,150-crore public issue was over-subscribed 1.81 times on the last day of the bidding today.

The initial public offer of Coffee Day Enterprises, which runs Cafe Coffee Day (CCD) chain, generated demand worth about Rs 2,000 crore, as it received bids for 4,66,90,830 shares against the total issue size of 2,58,14,198 shares, according to data available with the NSE till 1800 hours. The portion reserved for qualified institutional buyers (QIBs) was subscribed nearly 4.4 times while the category for non-institutional investors saw 53 percent subscription.

Retail investors pie was subscribed 90 percent, as per the latest information. The public offer, which had opened for subscription on Wednesday, is being seen as heralding revival in big-ticket IPOs and would be soon followed by IndiGo and Infibeam, among others. This is the largest IPO in the Indian market since Bharti Infratel's over Rs 4,000 public offer in December, 2012.

Coffee Day Enterprises has already raised over Rs 334 crore from anchor investors. The company, which competes with global giant Starbucks in the fast-growing Indian consumer market, has fixed a price band of Rs 316-328 per share for its IPO. Kotak Investment Banking, Citigroup, Morgan Stanley, Axis Capital, Edelweiss and Yes Bank are handling the IPO of Coffee Day Enterprises, whose shareholders include private equity giants KKR and New Silk Route.