Cafe Coffee Day IPO estimated to fetch Rs 1,500 cr
|
15 Dec 2014
|
|
India's largest coffee retail chain Cafe Coffee Day (CCD) today said that it is seeking to raise Rs 1,200-1,500 crore by selling 20-25 per cent stake in the chain through a public offer that values the 18-year old company at about a billion dollars, two people with direct knowledge of the matter said, reported media. At this valuation, the owner VG Siddhartha, a former investment banker who holds 70 per cent stake in the company along with his family members could be worth about Rs 4,500 crore. We cannot comment on the development, said Siddhartha in an emailed response. The firm started its final discussions — kick off discussions in industry parlance — on Thursday to finalise the draft prospectus with its three investment banks — Morgan Stanley, Citigroup and Kotak Mahindra Capital Company — to manage the issue. Consultants and investment bankers say the timing is just right to shed stake in the retail chain, in which private equity funds KKR, Stanchart PE and New Silk Route have been investors since 2000. They cited the bullish stock market, stronger local consumption and rise in market value of CCD's rival Jubilant Foodworks after it went public in 2010. The three funds invested about $150 million (about Rs 940 crore) to purchase a 20 per cent stake in the holding company ACBTC, which owns 1,650 retail outlets, more than three times that of all the three competitors combined, in more than 200 towns. |
| Source: Dion Global Type: IPO Related |
© 2024 Rediff.com India Limited. All rights reserved. Disclaimer - Terms of Service - Privacy Policy - Feedback