Coffee Day share price hits 20% upper circuit on reports Coffee Day Global, IndusInd Bank settle insolvency litigations
Coffee Day share price surges 20 per cent after settlement and withdrawal of insolvency litigations with IndusInd Bank.
PremiumCoffee Day share price surged 20 per cent to hit its upper circuit on BSE in intraday trade on Wednesday amid media reports that Coffee Day Global and IndusInd bank reached a settlement and have withdrawn insolvency litigations.
"Coffee Day Global and IndusInd bank told the Chennai bench of National Company Law Appellate Tribunal (NCLAT) on September 13 that they have reached a settlement and that the two parties have withdrawn insolvency litigations. NCLAT took their submissions on record and set aside the order admitting Coffee Day Global to insolvency," Moneycontrol reported.
Coffee Day Enterprises' share price opened at ₹42.38 against the previous close of ₹42.80 and jumped 20 per cent to an intraday high of ₹51.36 on BSE.
The stock has fallen over 25 per cent in the last one year. However, it has seen a sharp rebound in the last six months. Data show that the stock has surged over 48 per cent in the last six months while the equity benchmark Sensex has gained about 16 per cent in the same period.
The stock hit its 52-week high of ₹73.50 on September 14, 2022, and its 52-week low of ₹26.40 on March 28, 2023, on BSE.
As Mint reported earlier, Coffee Day Enterprises Ltd, which primarily manages cafe chain outlets under the Cafe Coffee Day (CCD) brand, is experiencing financial difficulties and is in the news for rumoured bankruptcy.
On July 24, according to a regulatory filing by Coffee Day Enterprises, parent company of Coffee Day Global, the Bengaluru bench of the National Company Law Tribunal (NCLT) passed an order over a plea brought by a financial creditor of the business who sought payment of ₹94 crore in unpaid debts.
IndusInd Bank petitioned the NCLT, according to a report by Economic Times, and as a result, the coffee chain is now subject to insolvency proceedings. Coffee Day Global is a subsidiary of Coffee Day Enterprises, which owns 82 per cent of it.
Meanwhile, for the quarter that ended June (Q1FY24), Coffee Day Global reported a net profit of ₹24.57 crore as against a loss of ₹11.73 crore in the year-ago period.
In the quarter under review, revenue from operations stood at ₹223.20 crore. According to the quarterly figures of Coffee Day Enterprises, it was ₹189.63 crore during the same period last year. For the quarter ended June, the total income came in at ₹250 crore.
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