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They have finally prepared a plan to bring IPO in order to raise Rs.1,150 crore ( around $180 million) and next month they will be filling a draft red herring prospectus (DRHP), a pre-IPO document. As per the sources, the company will repay its debts with Rs.750 crore and rest of the money ( around Rs.290 crore) will be utilized for capital expenditure to fund expansion of its chain and refurbishing its existing outlets.
Coffee Day Enterprises Ltd (CDEL), the parent company of the Cafe Coffee Day (CCD) on a pre-IPO round of funding in March was valued at Rs.6,200 crore. Even before this CDEL has raised Rs.100 crore from five investors, including Infosys Ltd co-founder Nandan Nilekani, investor Rakesh Jhunjhunwala’s Rare Enterprises and stock broker Ramesh Damani.
Today the coffee chain industry is witnessing an intense competition with players like Starbucks that entered Indian market with partnership with TATA group few years back. Hence, this step by CCD seems to be more logical way so as to make it’s feet even stronger in Indian market and reach a significant scale. 
