Coffee Day stock debuts 18% below issue price

Shares of Coffee Day Enterprises, which operates the country’s biggest café chain Café Coffee Day, plunged almost 18% on debut on Monday, as investors were worried over the complex organisational structure and the impact of loss-making group companies.

The stock opened at `313, compared to its issue price of `328. It hit a high of `318 and a low of `266, before closing the day at `270.15, 17.63% down, on the BSE.

Prabhudas Lilladher analyst Amnish Aggarwal said the reason for the fall was overriding reports about the issue being expensive.

Coffee Day Enterprises also has stakes in Sical Logistics and software services exporter Mindtree, owns luxury resorts and also has a presence in financial services and IT parks.

Being a parent company and a conglomerate, it has a discount to its valuation as it doesn’t have an active business model.