Coffee Day Enterprises Limited (CDEL) Rs. 1150 Cr IPO closed on 16th Oct with an over-subscription of 1.81 times. It was the biggest IPO in three years since Bharti Infratel in Dec 2012. Also, huge expectations were set on this one, hoping that this will be the initiator of much awaited revival in the primary market. On the contrary, a muted response was witnessed from all categories of investors in their subscription figures (QIB: 4.39, NII: 0.54, Retail: 0.90 and Employees: 0.86).
On preliminary analysis CDEL which owns a big brand CCD has lots of positives: It acts as a holding company for diversified business such as ITES (Mindtree), Logistics (Sical Logistics) and Financial Services (Way2Wealth Securities Ltd.). The promoter, VG Sidhartha has a good reputation in the Industry and CCD is a well-known brand having presence in almost all major Indian cities. On the flip side, the major negative for CDEL is its dreadful financial performance which continues to sink into hefty losses year after year.
Amidst all the hype of a big bang IPO, CDEL just managed to sail through on the last day as the investors analyzed all the positive and negative aspects about this IPO. The negative sentiments outnumbered the positives which is reflected in the dismal subscription numbers.
I analyzed the CDEL IPO from the Social Media perspective to gauge the overall sentiment around the same.
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