- By Aditya Pratap Singh
- Tue, 04 Mar 2025 02:09 PM (IST)
- Source:JND
Coffee Day Enterprises, the parent company of the Coffee Day chain, surged 20 percent in the stock market on Tuesday for the second consecutive day. Continuing its gains for the second consecutive day, shares of Coffee Day Enterprises Limited (CDEL) rose 20 percent each to hit the upper circuit limits on the BSE and NSE.
CDEL is the parent company of the Coffee Day Group, which operates the Cafe Coffee Day chain of coffee houses. It also owns and operates resorts, provides consulting services and is engaged in the sale and purchase of coffee beans.
The company's shares rose 20 percent on both the stock exchanges on Monday.
The stock rally gained significance as the broader market continued to trade in the red zone. The 30-share BSE Sensex fell 159.90 points or 0.22 per cent to settle at 72,926.04 in mid-session trade on Tuesday, while the NSE Nifty lost 51.30 points or 0.23 per cent to settle at 22,068.
On February 27, the NCLAT had set aside the dual arguments with CDEL.
The NCLAT bench in Chennai had set aside the order passed earlier by the National Company Law Tribunal's Bengaluru bench.
The insolvency proceedings against CDEL were resumed in February after the appellate tribunal failed to approve the NCLAT order by the February 21 deadline set by the Supreme Court.
Earlier, in August last year, IDBI Trusteeship Services Ltd. had filed a petition seeking a writ of certiorari against the company. The NCLT admitted the petition filed by the defaulter for Rs 228.45 crore and appointed an interim resolution expert to look after the management of the debt-ridden company.
The suspended board immediately challenged the order before the appellate tribunal NCLAT, which stayed the insolvency proceedings initiated against CDEL on August 14, 2024.
IDBITSL challenged the NCLAT order in the Supreme Court, and on January 31, 2025, the Supreme Court directed the Chennai bench of the NCLAT to dispose of the petition by February 21,
The Supreme Court held that if the NCLAT does not dispose of the appeal filed by CDEL, the order of the appellate tribunal staying the Corporate Insolvency Resolution Process (CIRP) will automatically stand vacated.
Although the NCLAT completed the hearing on the appeal filed by the suspended board director and reserved its order, it failed to pass the order within the stipulated time limit set by the Supreme Court.
Coffee Day Enterprises has been in trouble since the death of its founder chairman VG Siddhartha in July 2019. The debt has been reduced through asset settlement and has reduced significantly since the problems started.
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(With Inputs From PTI)