Coffee Day fails to stir the shares pot hot, trading below over 17% issue price

Mumbai: It was certainly not brewing hot for the shares of leading coffee chain operator Coffee Day Enterprises as it debuted on a weak note on the bourses today, plunging over 17 percent, against the issue price of Rs 328.[caption id=“attachment_2126303” align=“alignleft” width=“380”]  Weak debut on bourses. Image courtesy CCD website[/caption] The stock of Coffee Day Enterprises, which runs Cafe Coffee Day (CCD) chain, listed at Rs 313, a discount of 4.57 percent over the issue price on BSE. Massive selling soon engulfed the stock, which plunged 17.4 percent to touch a low of Rs 270.90 at 1350 hours. On NSE, the company debuted at Rs 317, a fall of 3.35 percent. It was trading with a sharp fall of 16.95 per cent at Rs 272.40 at 1350 hours. The company commands a market valuation of Rs 5,588.83 crore. Coffee Day Enterprises’ Rs 1,150-crore public issue was subscribed 1.81 times last month. The company, which competes with global giant Starbucks in the fast-growing Indian consumer market, had fixed a price band of Rs 316-328 per share for its IPO. Coffee Day Enterprises had raised over Rs 334 crore from anchor investors ahead of its IPO while in March the firm had mobilised Rs 100 crore in a pre-IPO funding from Nandan Nilekani and Rare Enterprises (owned by Rakesh Jhunjhunwala and Ramesh Damani), among others. Promoter holding in the company stands at 52.56 percent while FIIs and domestic institutional investors (DIIs) hold 6.49 percent and 10.68 percent, respectively, as per BSE data. Coffee Day Enterprises is the parent company of Coffee Day Group and operates coffee business through a subsidiary, Coffee Day Global Ltd (earlier known as Amalgamated Bean Coffee Trading Company Limited) and its subsidiaries. The broader market BSE benchmark Sensex was trading with a loss of 214.41 points at 26,442.42 at 1350 hours. PTI