Mumbai, Oct. 7: Cafe Coffee Day Enterprises has set a price band of Rs 316-328 per share for its upcoming initial public offer, eyeing a valuation of as much as Rs 6,750 crore ($1.04 billion).

The IPO, which is the biggest in nearly three years, will open for subscription on October 14 and is expected to garner Rs 1,150 crore. Investors will have to bid for at least 45 shares and in multiples of 45 shares.

The company will use the proceeds to repay loans of around Rs 635 crore, set up more outlets and refurbish existing ones. Part of the money will also be used in the manufacturing and assembling of vending machines.

Promoter, chairman and managing director V.G. Siddhartha said the company would set up at least 135 outlets annually over the next few years. It has a little over 1,500 outlets, making it the largest retail chain in this segment.

He said the café footprint was nearly four times larger than the cumulative footprint of its next four competitors.

New outlets will be set up under the three main formats - Café Coffee Day, The Lounge and The Square.

Café Coffee Day is targeted at the value-conscious youth segment, while The Lounge focuses on the trendy and affluent customers with higher disposable income. The Square is meant for coffee connoisseurs.

The company has got private equity giants such as KKR, Stanchart PE and New Silk Route as its investors. Infosys co-founder Nandan Nilekani also holds around 1.77 per cent.

At present, Siddhartha holds 54.78 per cent, while all promoters together have 92.74 per cent holding in the company.

The company has an over 16 per cent stake in IT firm Mindtree. The holding is valued at over Rs 2,000 crore.

Moreover, it holds nearly 53 per cent in subsidiary Sical Logistics, an integrated logistics solution provider.