Coffee Day Enterprises Shares Plunge 15% Amid Default Application Filing

11 Sep 2023 , 01:22 PM

Coffee Day Enterprises shares plummeted 15% on September 11. The stock hit a low of Rs 47.45 on the NSE due to IDBI Trusteeship Services filing a default application. The application alleges a default of Rs 228.45 crore under Section 7 of the Insolvency and Bankruptcy Code.

Coffee Day Enterprises responds by seeking legal advice and vows to protect its interests. In August 2023, the National Company Law Appellate Tribunal (NCLAT) placed an order admitting Coffee Day Global to insolvency.

NCLAT requests IndusInd Bank to file a response regarding arguable points. A hearing on the matter is scheduled for September 25. In July 2023, the Bengaluru NCLT admitted Coffee Day Global to insolvency after a petition by IndusInd Bank claiming a default of Rs 94 crore.

Coffee Day Enterprises reports a net profit of Rs 21 crore in August 2023, a turnaround from a loss of Rs 17 crore in Q1FY22. Revenue grew by 18 % to reach Rs 247 crore. Coffee Day Global Enterprises operates 495 cafes in 158 cities and 285 CCD Value Express kiosks and vending machines for workplaces and businesses.

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