Coffee Day Global shares rise 16% after averting insolvency proceedings
Shares of Coffee Day Global rose 16% on the NSE by mid-day on September 13, after the company averted insolvency proceedings and reached a settlement with IndusInd Bank. As of 1:10pm, the shares were trading at Rs 50, up from Tuesday’s close of Rs 42.75.
The company and the bank informed the Chennai bench of the National Company Law Appellate Tribunal (NCLAT) on September 13 that they had withdrawn the insolvency litigations after reaching a settlement.
The NCLAT had stayed an order allowing Coffee Day Global to be admitted to the insolvency process on August 11. The NCLAT noted that it had found certain arguable points that called for clarifications and asked IndusInd Bank to file its response in two weeks.
The Bengaluru bench of the National Company Law Tribunal (NCLT) had admitted Coffee Day Global, which runs the Cafe Coffee Day chain, to insolvency on July 20 after IndusInd Bank moved a petition alleging default on Rs 94 crore.
The settlement between Coffee Day Global and IndusInd Bank is a positive development for the company and its shareholders. It will allow the company to focus on its business and emerge from the insolvency process stronger.
The settlement is also a relief for the employees of Coffee Day Global, who were worried about their jobs. The company has said that it will continue to operate its businesses as usual and that there will be no job losses.
The settlement is a win-win for both parties. IndusInd Bank will get its money back, and Coffee Day Global will be able to avoid liquidation and continue as a going concern.
It remains to be seen what the terms of the settlement are. However, it is clear that this is a positive development for Coffee Day Global and its stakeholders.
Related News
- 22 Sep
NBCC shares trade higher on Rs 100 crore work order from SAIL
NBCC shares were trading 3 percent higher on September 22 after the company announced having bagged a work order worth Rs 100 crore from SAIL. This is the fourth order-win announced by the company in this month, the total value of the same being Rs 450 crore. NBCC is a public sector undertaking engaged in the business of construction and real estate development. The company specializes in providing project management, consultancy and engineering services for civil construction, infrastructure development, and real estate projects.
- 22 Sep
Glenmark Pharma stock falls on stake sale in Glenmark Life Sciences
Glenmark Pharma stock fell after the company announced it would sell a 75% stake in its subsidiary Glenmark Life Sciences to Nirma. Analysts expect the stake sale to benefit Glenmark Pharma, as it will transition from a net debt position to a cash surplus position. This is expected to have a positive impact on the company's return ratios over the next two to three years.
- 22 Sep
Berger Paints Shares Hit 52-Week High After Turning Ex-Bonus
Berger Paints shares surged 6% to hit a 52-week high after turning ex-bonus on the record date for the issue of bonus shares in the ratio 1:5. The company posted a net profit of Rs 326.3 crore in the April-June quarter of FY24, up 39% year-on-year, on revenue of Rs 2,739.7 crore, up 10% year-on-year. The company expects to get net cash positive by the end of this fiscal year and expects to end the year with double-digit revenue growth on strong demand outlook.
- 22 Sep
Market Update for September 22, 2023
IdeaForge Tech up 3.4% on order RVNL up 3% on highway MoU JSW Steel up 0.4% on sale ICICI Lombard down 1.6% on CEO exit ICICI Bank down 1% on healthcare investment NHPC up 1.3% on extended additional charge Kalyani Forge up 3.2% on new MD IRB Infra up 2.5% on road project closure
- 22 Sep
Lux Industries Shares Down 3% After Income Tax Raid
Lux Industries shares fell 3% on September 22 after news emerged that the Income Tax department had conducted searches at the company's premises in Kolkata and alleged a tax evasion of Rs 200 crore. The company has confirmed the searches and is extending full support.
Leave a Reply