Infosys cofounder Nandan Nilekani and billionaire investor Rakesh Jhunjhunwala have bought stakes in the entity that owns the Cafe Coffee Day chain ahead of an initial share sale in the coming weeks, reports The Economic Times.
Nilekani and Jhunjhunwala have together invested Rs 100 crore (US$16 million) in the pre-IPO placement, valuing Coffee Day Enterprises at Rs 6,000-6,500 crore (US$965 million – US$1.045 billion) writes the daily citing sources familiar with the matter
Radhakishan Damani, founder of retail chain D-Mart and a man reputed to be one of India’s shrewdest investors, is also on the verge of sealing a deal to buy an undisclosed stake in Coffee Day Enterprises, giving the Bangalore-based holding company a burst of star power before its listing
Jhunjhunwala confirmed his investment while Nilekani did not reply to questions seeking comment and Damani declined to comment, according to The Economic Times. VG Siddhartha, the founder of Coffee Day and who is known to be a personal friend of all three, also declined to comment.
The share sale by Coffee Day will be the first major IPO of 2015 as the coffee chain looks to cash in on a buoyant stock market to fund its growth.
