Coffee Day up 20%, hits upper circuit limit after settlement with creditor

Shares of Coffee Day Enterprises Ltd jumped 20 per cent on Wednesday after Coffee Day Global Ltd (CDGL) and its financial creditor IndusInd Bank reached a settlement, following which NCLAT has set aside an insolvency order against the company which owns and operates coffee chain Cafe Coffee Day.

The stock rallied 19.77 per cent to settle at Rs 51.26 apiece on the BSE. During the day, it jumped 20 per cent to Rs 51.36 -- its upper circuit limit.

On the NSE, it zoomed 20 per cent to Rs 51.30 per piece -- its upper circuit.

In volume terms, 31.18 lakh shares of the company were traded on the BSE and over 2 crore shares on the NSE during the day.

Counsel representing CDGL and IndusInd bank on Wednesday informed the Chennai bench of National Company Law Appellate Tribunal (NCLAT) about the settlement and sought permission to withdraw insolvency litigations.

A two-member bench comprising Justice M Venugopal and Shreesha Merla took their submissions on record and set aside the order admitting CDGL to insolvency.

As per the annual report of its parent firm Coffee Day Enterprises Ltd (CDEL) for FY23, CDGL owns 469 cafes in 154 cities and 268 CCD Value Express kiosks. It operated 48,788 vending machines that dispense coffee in corporate workplaces and hotels under the brand.