On Monday’s early trade, the shares of India’s largest cafe chain operator fell 18 percent to Rs 43.35 apiece after IDBI Trusteeship Services Limited filed an Insolvency and Bankruptcy plea against the company.
At 10:30 a.m., Coffee Day Enterprises Ltd shares were trading at Rs 45.25 per share, down Rs 7.90 or 14.88 percent from the previous close price on the Exchange. The company has a market capitalization of Rs 954 crore.
IDBI Trusteeship Services Limited has filed an application against the Company before the National Company Law Tribunal in Bengaluru under Section 7 of the Insolvency and Bankruptcy Code, 2016, and Rule 4 of the Insolvency and Bankruptcy Rules, 2019, for a default of Rs 228.45 crore. According to BSE filings.
Last month, the Chennai bench of the National Company Law Appellate Tribunal (NCLAT) upheld the order of the NCLT to initiate insolvency proceedings against Coffee Day Global Ltd.
On July 20, 2023. The Bengaluru bench of the NCLT issued an order over a plea filed by IndusInd Bank, a financial creditor of the company,
The company’s revenue has increased by 17 percent yearly, from Rs 210 crore in Q1FY23 to Rs 247 crore in Q1FY24. During the same period, Net profit jumped from a loss of Rs 21 crore to a profit of Rs 24 crore.
According to the latest shareholding pattern, the promoters own 9.83 percent of the company, while retail investors hold an 86.93 percent stake.
Coffee Day Enterprises Ltd is the parent company of the Coffee Day Group. The Group is involved in the retail and export of coffee, as well as hospitality and consultancy services.
Written by Omkar Chitnis
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