Café Coffee Day Files Draft Prospectus For $181 Million IPO

26/06/2015 7:23 PM IST | Updated 15/07/2016 8:25 AM IST
Vikram Vetrivel/Flickr
Nothing starts off a new chapter better than coffee.... The Story Behind the Pic: I was waiting at the Bengaluru International airport to pick up a friend who was returning. Having reached the airport a good one hour in advance, I decided to spend my time clicking pictures. I probably would have clicked some 10 snaps when a security guy (he wasn't a cop) comes by and asks me what I was doing and that photography was not permitted. Screw him! As I am interested in airplane photography (though I havent uploaded any here on Flickr) I always carry the circular from the Directorate of Civil Aviation with me. I showed it to him and told him I had proof that it was indeed permtted and I aint gonna stop clicking. That did the trick. He left me in peace and I could get back to getting some shots taken. This one is from the Cafe Coffee Day at the visitor assembly area.. Loved the color..

The firm behind Café Coffee Day, India's biggest homegrown coffee chain, has filed a draft prospectus with regulators for an initial public offering (IPO) to raise as much as 11.5 billion rupees ($181 million).

Kotak Mahindra Bank, Morgan Stanley and Citigroup are among the underwriters for the IPO, the draft prospectus said.

India's biggest cafe operator opened its first shop in 1996 and has grown to more than 1,500 outlets as more young, urban consumers opt for cappuccino over tea and seek out spaces to socialise in overcrowded, traffic-congested cities.

The application process with the Securities and Exchange Board of India (SEBI) could take two to three months, two bankers told Reuters, adding they expected the coffee chain to list within one to two months after that approval.

The bankers declined to be identified as they are not authorised to speak to the media.

Coffee Day Enterprises had consolidated debt of 28.64 billion rupees as of December 31, according to the draft prospectus.

Of the IPO proceeds, the chain plans to use 6.33 billion rupees towards the repayment of debt, it said.

($1 = 63.5888 rupees)

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