Coffee Day Enterprises
Ltd is the parent company of the Coffee
Day Group, which currently operates in businesses such as coffee, development and management of IT-ITES technology parks, providing integrated logistics solutions, financial services, hospitality and investing in technology companies. The Company is engaged in the coffee business through the subsidiary, Coffee Day Global Limited (earlier known as Amalgamated Bean Coffee Trading Company Limited) (“CDGL”) and its subsidiaries. It is also engaged in coffee trading through CDEL and Coffee Day Trading Limited. The Company opened its first Café Coffee Day outlet in Bengaluru in 1996 and has established the largest footprint of café outlets in India as of December 31, 2014.
V. G,. Siddhartha, CMD, Coffee Day Enterprises holds a bachelor degree in arts from the university of Mysore. He has an experience of 22 years in the coffee business.
Yash Ved of IIFL provides you the highlights of a media interaction, where V. G,. Siddhartha says “We are planning to raise Rs.1150 crore via IPO.
Brief us about your IPO plans?
We are planning to raise Rs.1150 crore via IPO. The issue will open on October 14, 2015. The Issue comprises a net Issue to the Public (the “Net Issue”) and a reservation of Equity Shares aggregating up to Rs. 150 million for subscription by eligible employees (the “Employee Reservation Portion”).
The Price Band has been fixed from Rs. 316 to Rs. 328 per Equity Share.
The Global Co-ordinators and Book Running Lead Managers (“GCBRLMs”) to the Issue are Kotak Mahindra Capital Company Limited, Citigroup Global Markets India Private Limited and Morgan Stanley India Company Private Limited. The Book Running Lead Managers (“BRLMs”) to the Issue are Axis Capital Limited, Edelweiss Financial Services Limited and YES Bank Limited.
What are the objects of the issue?
The main objects of the issue is to set up new Cafe Network outlets and Coffee Day Xpress Kiosks; Manufacturing and assembling of vending machines; Refurbishment of existing Cafe Network outlets and vending machines; setting up of a new coffee roasting plant facility; along with integrated coffee facility and tea packing facility.
Who are your investors?
The company has private equity giants like KKR, Stanchart PE and New Silk Route as its investors.
What are your investment plans?
We are planning to set up 135 stores every year.
The company is planning to invest 290 crores for expansion.
What is your business strategy?
Our strategy is to further deepen the existing cafe chain, increase cafe revenues by generating higher footfalls and driving increased competition.
We will continue to introduce new products and improve existing product offerings in order to expand our market share and to develop our non-coffee business.
Brief us about your Financials?
In Financial Year 2013, 2014 and 2015, and for the three month period ended June 30, 2015, the total income on a consolidated basis was Rs. 11,263.90mn, Rs. 11,541.92mn, Rs. 12,717.62mn and Rs.3,414.76mn.