IPO Updates, CCD and IndiGo

Dear Investor,

Find here our IPO report updates:

Café Coffee Day IPO UPDATE 

Here is a short listing day report on the Coffee Day IPO.

  • On 10th Oct, we had rated the IPO as an Average offering. See entire report:
  • Café Coffee Day IPO – Very Hot Coffee 
  • The IPO received lukewarm response with a 1.8 times subscription. This is low by our general IPO standards. It garnered over Rs 2000 cr. on an offering of Rs 1150 cr.
  • Categories of Retail, QIB and non-institutional NII received 0.9, 4.4 and 0.53 times subscription
  • The IPO listing price was however declared at the upper end of Rs 328.
  • The share has listed today and so far we are seeing a weak performance, with a 16% fall below this price to the current Rs 275. (at 1.30 pm)

CCD Offering Overview:

  • Price range: 316 – Rs. 328 Per Equity Share and IPO Period:  Oct 14–16, 2015
  • Mid Cap – Rs 4,979 cr Mkt Cap
  • Industry – Coffee QSR, conglomerate
  • Advice: Average offering with medium to high risks.

 IndiGo IPO UPDATE 

Here is a short post IPO offering report on the Coffee Day IPO.

  • On 27th Oct, we had rated the IndiGo IPO as a Good offering. See entire report:
  • Indigo IPO – Flying High, Wide And Handsome
  • The IPO received a healthy response with a 6.15 times subscription. Given the size of Rs 3,018 of the offering, this means applications were for a massive Rs 19,000+ crores.
  • Retail, QIB and NII category got subscribed 0.92, 17.8 and 3.57 times respectively.
  • Listing is expected around Nov 13th (As per the rules pertaining to the IPO market, the shares of any company should be listed on stock exchanges for trading by 12th working day from the IPO issue close date.)

IndiGo Offering Overview:

  • IPO Period: 27-29th Oct 2015 and Price range: Rs. 700-765
  • Industry – Airlines
  • Large Cap – 27,600 cr mkt cap
  • Advice: Good offering with medium risks. BUY with a minimum 1 year horizon.

Disclaimer

This document has been prepared by JainMatrix Investments Bangalore (JM), and is meant for use by the recipient only as information and is not for circulation. This document is not to be reported or copied or made available to others without prior permission of JM. It should not be considered or taken as an offer to sell or a solicitation to buy or sell any security. The information contained in this report has been obtained from sources that are considered to be reliable. However, JM has not independently verified the accuracy or completeness of the same. JM has no known financial interests in IndiGo or Interglobe Aviation or CCD or any related firm. Neither JM nor any of its affiliates, its directors or its employees accepts any responsibility of whatsoever nature for the information, statements and opinion given, made available or expressed herein or for any omission therein. Recipients of this report should be aware that past performance is not necessarily a guide to future performance and value of investments can go down as well. The suitability or otherwise of any investments will depend upon the recipient’s particular circumstances and, in case of doubt, advice should be sought from an independent expert/advisor. Punit Jain has applied for certification under SEBI (Research Analysts) Regulations, 2014. Any questions should be directed to the director of JainMatrix Investments at punit.jain@jainmatrix.com

Café Coffee Day IPO – Very Hot Coffee

  • Date 10th Oct 2015
  • Mid Cap – Rs 4,979 cr Mkt Cap
  • Industry – Coffee QSR, conglomerate
  • Price range: Rs. 316-328 and Period:  14-16th Oct 2015
  • Advice: Average offering with medium to high risks. 

Summary

  • Overview: Coffee Day Enterprises is a conglomerate into coffee, logistics, hospitality, financial services and technology parks. The “Café Coffee Day” brand and chain is a valuable asset.
  • The CCD chain is a network of 1,538 café outlets in 209 cities with a 46% market share. The coffee business is integrated from plantation to processing, retail and exports.
  • Revenue and EBITDA have grown 29.7% and 25% CAGR over 5 years. But losses were Rs 87.2 cr. in FY15. The firm is debt heavy. Profitability appears to be 2-5 years away.
  • Opinion: The CCD IPO is rated Average as it carries medium to high risks and is only appropriate for investors with patience and a minimum 3 year investment perspective.

Download/ read the entire report.

JainMatrix Investments_Cafe Coffee Day_Oct2015

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Disclaimer

This document has been prepared by JainMatrix Investments Bangalore (JM), and is meant for use by the recipient only as information and is not for circulation. This document is not to be reported or copied or made available to others without prior permission of JM. It should not be considered or taken as an offer to sell or a solicitation to buy or sell any security. The information contained in this report has been obtained from sources that are considered to be reliable. However, JM has not independently verified the accuracy or completeness of the same. JM has no known financial interests in CCD or any related firm. Neither JM nor any of its affiliates, its directors or its employees accepts any responsibility of whatsoever nature for the information, statements and opinion given, made available or expressed herein or for any omission therein. Recipients of this report should be aware that past performance is not necessarily a guide to future performance and value of investments can go down as well. The suitability or otherwise of any investments will depend upon the recipient’s particular circumstances and, in case of doubt, advice should be sought from an independent expert/advisor. Either JM or its affiliates or its directors or its employees or its representatives or its clients or their relatives may have position(s), make market, act as principal or engage in transactions of securities of companies referred to in this report and they may have used the research material prior to publication. Any questions should be directed to the director of JainMatrix Investments at punit.jain@jainmatrix.com