NEW DELHI—The firm behind India's biggest coffee chain, Coffee
Day Enterprises Ltd., said Friday it plans to go public and raise
$181 million, as it looks to solidify its presence in a country
whose growing cafe culture has drawn global giants such as
Starbucks Corp. and Dunkin' Brands Inc.
Coffee Day Enterprises, which runs Cafe Coffee Day outlets
across the country, didn't specify the size of the stake it is
selling. Previous estimates have valued company at nearly $1
billion. A company spokeswoman declined to elaborate.
Formed in 1996, Cafe Coffee Day is credited with triggering a
cafe craze in the country, flooding not just India's metropolises
but also its smaller cities with cafes. The Bangalore-based company
leads India's coffee chain sector with more than 1,400 outlets
across 209 cities. Rivals Starbucks and Dunkin' Donuts have fewer
than 100.
While India is a nation best known for its tea drinkers, sipping
coffee and socializing at coffee shops is becoming increasingly
popular. Domestic consumption of coffee rose to an estimated
108,000 metric tons in 2010, up 80% in the past decade, according
to government figures. Indian consultancy Technopak said revenue
from cafes likely would percolate to $410 million in 2017 from
about $230 five years ago.
Coffee Day Enterprises Ltd. said money raised will be used to
clear a debt of roughly $100 million. Another $36 million will be
used to expand its footprint and revamp its existing store
network.
Write to Preetika Rana at preetika.rana@wsj.com
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