Mumbai: The firm behind Cafe 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 Rs 1,150 crore ($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 that 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 Rs 2,864 crore as of December 31, according to the draft prospectus.
Of the IPO proceeds, the chain plans to use Rs 633 crore towards the repayment of debt, it said.
($1 = 63.5888 rupees)
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
