Coffee Day Enterprises locked at upper circuit

In a meeting of the Executive Committee, Coffee Day Enterprises Limited (CEDL) decided to appoint IDFC Securities as the advisor of the company and its subsidiaries. Reacting to this development the stock of the company surged 5 per cent to hit upper circuit on the BSE.

As per the decision, IDFC Securities will be responsible to identify the strategic opportunities for Coffee Day Enterprises Limited (CEDL) which also includes the divestment of the company’s holding in Coffee Day Global Limited and any other group company except SICAL Logistics Limited. IDFC Securities must also provide advice to refinance the existing debt and raise additional facilities for repaying debt in CEDL and its subsidiaries.

The popular Indian cafe chain Café Coffee Day (CCD) is a subsidiary of Coffee Day Enterprises Limited (CEDL) serving in around six countries globally.

In July of this year, the company’s founder V. G. Siddhartha committed suicide addressing issue of not being able to create a profitable business model as the reason behind such a huge step.

On Monday, the stock of Coffee Day Enterprises had opened at Rs. 63.95, up by 4.92 per cent or Rs. 3 per share thus hitting its upper circuit band of 5 per cent. Hence, trading for the day was further suspended after touching the upper circuit. The 52-week high of the stock is Rs. 325 and 52-week low is Rs. 60.95 on BSE.