~~ Beginning of the Case ~~
A LOT IS HAPPENING OVER A COFFEE..!!!
(Case Study – Valuing IPO of Café Coffee Day)
Swarup prefers to spend his Sundays as dull as possible. The Sunday of October 11thof 2015 was going to be different for him. On any other weekday he would’ve commenced the day with getting a global market update from the Bloomberg app on his iPad. Being an investment broker for several HNI investors of Equate Advisors, Swarup is a much sought after relationship manager by his clients. His clients feel Swarup is one such adviser, whose stock picks rarely go wrong. His boss at Equate Advisors is generally happy with his performance in terms of delivering numbers and maintaining satisfied customer relations, but, he feels Swarup sometimes contradicts the stock advises of central research team. Swarup argues that’s precisely the reason for his success. He does not blindly recommend a stock to his clients, instead, with every such recommendation that comes to him from his research team in Mumbai, he does his own valuation of the stock before he arrives at his conclusion. He strongly believes this always works.
By the time he woke up on this Sunday it was already 9.30 am. He stepped out of his apartment after a short work-out module at the club-house. The generally-residential area that it is, Sahakar Nagar in Bangalore, was semi-urban in landscape. Less than 200 meters from his apartment complex was an outlet of Café Coffee Day (popularly called CCD), to which Swarup was a regular visitor. He had an emotional connect with CCD, as most of his successful client meets happen in CCD outlets, thanks to widespread presence across Bangalore; he spends most of his leisure and he feels rejuvenated after every visit in CCD; and more than anything, it is in this CCD that he proposed his girlfriend (and she accepted..!!). Truly a lot happened to Swarup over Coffees in CCD…!!!