The stock rallied 16.1 percent in three
straight sessions after falling 68.5 percent in the previous 16 sessions in a
row due to the shock death of founder VG Siddhartha on July 29.
Shares of Coffee Day
Enterprises were locked in the upper circuit for the third consecutive day
on August 21 after a media report indicated that ITC could
be eyeing a stake in the company.
The stock rallied 16.1
percent in three straight sessions after falling 68.5 percent in the 16
sessions before, due to the untimely death of founder VG Siddhartha on July 29.
His body was found on the
banks of the Netravati river in Karnataka on July 31, two days after the
60-year-old businessman had gone missing.
The stock was locked in 5
percent upper circuit at Rs 72.80 on the BSE
Cigarette-hotel-to-FMCG
major ITC said it would consider bidding for a stake in Coffee Day
Enterprises, CNBC-TV18 reported, quoting agencies.
The buying resumed
since August 19 primarily driven by a media report that said the promoters
were likely to resume talks with Coca-Cola for a stake sale in Cafe Coffee Day
chain to cut debt.
Coffee Day Enterprises
(CDE) owns Café Coffee Day, India's largest cafe chain that operates 1,750
outlets across the country.
The deal would help
Coca-Cola get a foothold in the cafe space as it tries to expand beyond its
core carbonated drinks portfolio.
Consequently, it would
help Coffee Day Group reduce debt obligations significantly. The company's debt
as on July 31, 2019, was Rs 4,970 crore, with the debt incurred by its
logistics arm, Sical, accounting for about Rs 1,488 crore.
The group recently
sold Global Village Tech Park, under it is real estate arm Tanglin, in
Bengaluru to Blackstone Group for about Rs 2,600-3,000 crore.
The total debt
position of Coffee Day Group will reduce by Rs 2,400 crore after the payment
for the deal is received.
The debt position of the Coffee Day Group (excluding Sical
and Magnasoft), post repayment of debt out of proceeds from sale of Global Village,
will be Rs 1,000 crore in the next 45 days.
Source: https: //www.moneycontrol.com/news/business/markets/coffee-day-enterprises-locked-at-upper-circuit-for-3rd-day-in-a-row-as-itc-mulls-buying-stake-4357841.html
To get more details about the share market call us on 8818886453
or visit our website https://www.moneyplantresearch.com.
No comments:
Post a Comment