Coffee Day shares open below IPO price on debut

KOLKATA: Shares of Coffee Day Enterprises Ltd (CDEL), which runs the Café Coffee Day chain, fell 14.5% in its debut, valuing the company at about $880 million.
The initial public offering raised $175.65 million in proceeds, after the IPO was priced at Rs 328, the top end of the expected price range of Rs 316-Rs 328.
The offering, which was open from October 14-16, was oversubscribed 1.8 times and constitutes 17.02% of the company’s post-issue paid-up equity share capital.
Coffee Day, which competes with Starbucks, Costa Coffee and Barista, sold all the 35.06 million shares in the offering.
Major anchor investors include Blackrock, Merrill Lynch Capital, ICICI Prudential, Axis Mutual Fund and National Westminster Bank.
Coffee Day shares opened at Rs 317 on the National Stock Exchange and touched a low of Rs 280.50 in morning trade. About 7.62 million shares changed hands. The stock is yet to touch its offer price.