cafe coffee day initial public offering

Demystifying Stocks

Initial Public OfferingOF CAFÉ

COFFEE DAY-Jaya Saxena

MBA- Finance

Initial Public Offering

Investment OpportunitiesThe first public offering of equity shares or convertible securities by a company, which is followed by the listing of a company’s shares on a stock exchange, is known as an ‘Initial Public Offering.

orWhen a company issued its shares first time to public in primary market.

IPOs

INVESTORS OPPORTUNITIES

How do IPOs Work

•A company decides to take out an IPO, and fixes the number of shares and price, at which the offer will be made to the public.

Step 1

• Investors then apply for shares of this company, and normally, most IPOs get applications for more shares than the total offer.

Step 2 •Whenever the applications are more than the offer, companies make partial allotment to investors.

Step 3

IPO Process

IPO Process

Fixed price method Book building method

Combination method

In the fixed price method, the price at which the securities are offered is fixed

in advance.

In the book building method, the

investors have to bid for shares within a

price band specified by the issuer and the

final price is decided after

observing the result of the bidding

In the combination method,

components of both the methods- fixed

price & book building method are

considered.

Who invests in IPOs?

• There can be two kinds of investors for IPOs. One is the long term investor who buys the stock of a company with a mindset of holding it for a long period of time to make profits.

• The other kind is the short term investor who just buys into the IPO to sell during the initial few days or even hours of listing and make what are known as listing gains.

Benefits of IPOs

• Stocks and shares are a fast way to raise capital for business expansion

and growth.

• By becoming a publicly traded company, a business can take

advantage of new, larger opportunities. IPO gives a company

fast access to public capital.

• For the investor, IPOs are attractive mainly because they are perceived to

be undervalued.

•To make IPOs more attractive, many companies may offer their initial public offering at a low rate. This encourages investors to buy. IPOs

may be undervalued in some cases, which can help the investor make a

quick profit.

For Companies For Investors

Strategy for Horizon 7

IPO OF CCD

•INTRODUCTION-

•Café Coffee Day Enterprises Ltd. own and operates coffee cafes in India since 1996.

•Company is well known for its brand name 'Cafe Coffee Day' (CCD). Company owns a network of 1,472 Cafe outlets spread across 209 cities in India.

•As of Dec 2014, Cafe Coffee Day has market share of 46% in India in terms of the number of chained Cafe outlets.


Objective Of IssuesCompany proposes to utilize the net proceeds towards funding the following objects:

A. Financing coffee businesses

1. Setting-up of new Cafe Network 2. Manufacturing and assembling of vending machines;3. Refurbishment of existing Cafe Network outlets and vending machines 4. Setting-up of a new coffee roasting plant facility, along with integrated coffee packing facility and tea packing facility.

B. Repayment or prepayment of loans of the Company and Subsidiaries

C. General corporate purposes


ISSUE DETAIL

»» Issue Open: Oct 14, 2015 - Oct 16, 2015

»» Issue Type: 100% Book Built Issue IPO

»» Issue Size: Equity Shares of Rs. 10

»» Issue Size: Rs. 1,150.00 Cr.

»» Face Value: Rs. 10 Per Equity Share

»» Issue Price: Rs. 316 - Rs. 328 Per Equity Share

»» Market Lot: 45 Shares

»» Minimum Order Quantity: 45 Shares

»» Listing At: BSE, NSE


Listing date trading informationn

NSERs. 328.00Rs. 317.00Rs. 266.30Rs. 317.00Rs. 271.0018,353,828

BSEIssue Price: Rs. 328.00Open: Rs. 313.00Low: Rs. 266.00High: Rs. 318.00Last Trade: Rs. 270.15Volume: 3,800,000


Cafe Coffee Day IPO Listing Date

› Listing Date: Monday, November 2, 2015

› BSE Script Code: 539436

› NSE Symbol: COFFEEDAY

› Listing In: B Group of Securities

› ISIN: INE335K01011

› Issue Price: Rs. 328.00 Per Equity Share

› Face Value: Rs. 10.00 Per Equity Share

Number of Times Issue is Subscribed (BSE + NSE)

As on Date & Time QIB NII RII Employee Total

Shares Offered / Reserved

7,380,654 5,387,658 12,571,203 474,683 25,814,198

Day 1 - Oct 14, 2015 17:00 IST

0.1700 0.0300 0.1600 0.0800 0.1300

Day 2 - Oct 15, 2015 17:00 IST

1.9800 0.0700 0.3300 0.4500 0.7500

Day 3 - Oct 16, 2015 20:00 IST

4.3900 0.5400 0.9000 0.8600 1.8200


Allotment Process

Category No. of Applications

No. of Equity Shares applied

NO. of equity shares allotted

A. Retail Individual Bidders 10,972,800 10,611,180

B. Non-Institutional Bidders 2,743,830 2,676,105

C.Qualified Institutional Buyers (excluding Anchor Investors)

32,248,710 11,015,448

D. Anchor Investors 10,664,505 10,381,097

E. Eligible Employees 396,045 377,145

THANK YOU

cafe coffee day initial public offering

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