Coffee Day Enterprises shares plummet 15% amid default allegations
What's the story
Coffee Day Enterprises stocks dropped 15% today (September 11), after IDBI Trusteeship Services registered a default application against the company with the National Company Law Tribunal (NCLT).
The application, filed under Section 7 of the Insolvency and Bankruptcy Code, claims a default of Rs. 228.45 crore (approximately $31 million).
Coffee Day Enterprises is seeking legal advice and plans to take necessary steps to protect its interests. The hearing is scheduled for September 25.
Stats
Coffee Day Enterprises reported Q1 FY23 profit
In August this year, Coffee Day Enterprises registered a net profit of Rs. 21 crore (around $2.8 million), a significant improvement from a loss of Rs. 17 crore (roughly $2.3 million) in Q1 FY22.
The company's revenue grew by 18% to Rs. 247 crore ($33.5 million).
Coffee Day Enterprises owns 495 cafes across 158 cities. It has also established 285 CCD vending machines and Value Express kiosks across workplaces and businesses.
Details
IndusInd Bank has also filed a default petition
Back on July 20, the NCLT's Bengaluru bench admitted Coffee Day Enterprises to insolvency, following a petition by IndusInd Bank, alleging default on Rs. 94 crore.
Meanwhile, on August 11, the National Company Law Appellate Tribunal (NCLAT) stayed an order permitting Coffee Day, to be admitted to the insolvency process.
The NCLAT at that time said that it had found some arguable points that required clarification. It ordered IndusInd Bank to file a response in two weeks.
Insights
A look at Coffee Day Enterprises's stock prices
Today, Coffee Day Enterprises opened at Rs. 48.15 per stock on the National Stock Exchange (NSE) and reached a high of Rs. 48.20.
It is currently trading at Rs. 45.65 per share, which is down by 14.03% compared to yesterday.
Coffee Day Enterprises has a market capitalization of Rs. 965.42 crore.
On the Bombay Stock Exchange (BSE), it is trading at Rs. 45.65 too (down 13.98%).