Shares of Coffee Day enterprises the owners of the popular Café Coffee Day had a disastrous listing. The shares which were issued at the top end of the price band of Rs 316-328 and allotted at Rs 328 were on a one way street and just kept on falling. The discovered price against the issue price of Rs 328 was Rs 313 on the BSE and Rs 317 on the NSE. The closing price Rs 270.15 on the BSE and Rs 270.45 on the NSE. What happened to the extensive roadshows that were done to discover the price? And how come the price fell over 17.5% on day one. These are questions for which answers will never be forthcoming either from the promoter or the merchant bankers. The fact remains that CDE (Coffee Day Enterprises) was an expensive issue and did not deserve that valuation.
| Exchange | Open | High | Low | Close | Net Change | % Gain/loss | Wt. Avg | Volume | Delivery | Del %age |
| BSE | 313.00 | 318.00 | 266.00 | 270.15 | -57.85 | -17.64 | 284.80 | 3799555 | 999215 | 26.30 |
| NSE | 317.00 | 317.00 | 266.30 | 270.45 | -57.55 | -17.55 | 285.36 | 18353828 | 4540154 | 24.74 |
| Total | 22153383 | 5539369 | 25.00 |
Some key facts from the above data indicate that selling in the share is yet to get over. Employees who subscribed 86% of the reserved bucket had applied for 4,07,655 shares. This was largely through financing. They received a second shock that they are not allowed to sell shares till the 11th of November as the company is to declare results on the 9th of November for the half year ended 30th September. Data points are as follows: –
The total traded shares at 221.53 lac shares is 63% of the issue size.
Delivery of 55.39 lac shares is 25% of the traded volume and 15.80% of the IPO size of 350.60 lacs.
Delivery is 22.45% of the issue minus the anchor as they have a 30 day lock in.
There were no names in buying and selling of the shares in bulk category. The issue had received decent support from QIB’s being oversubscribed 4.39 times, and then on the last day HNI’s chipped in with 54% and retail with 90%. The people who have sold are primarily from the HNI category and some retail who had transacted in the grey market as the same was active during the fag end of the issue.
The company needs to pull a rabbit out of its hat quickly to revive fortunes of the sagging price. All in all with shares of Coffee Day down a staggering Rs 57-58 and 17.5% it’s a disastrous start for the company. A lot can happen over coffee is a tag line of CCD and that has happened in a negative manner for investors so far.
