The company behind Cafe Coffee Day, India's biggest coffee chain, will launch an initial public offering next week, aiming to raise up to $176 million in the country's biggest IPO in nearly three years.
India has seen fewer IPOs in the last few years because of volatile markets and slowing economic growth, and the response of foreign and local investors to this offering will be a test of appetite for new issues in the current unsettled climate.
Indian companies have raised about $1.1 billion via IPOs so far this year, higher than $223 million for all of last year and $285 million in 2013, but much lower than $3.5 billion raised in 2010, according to Thomson Reuters data.
Coffee Day Enterprises, which competes with Starbucks among others in India, is backed by private equity firm KKR & Co. It will launch its share sale on Oct. 14, according to its IPO prospectus seen on Tuesday.