Coffee Day Shares Surge 20% as Insolvency Proceedings Revoked

Shares of Coffee Day Enterprises spiked 20% after the National Company Law Appellate Tribunal halted insolvency proceedings against the company. The tribunal reversed an earlier decision from the National Company Law Tribunal, causing significant market reaction as investors responded to the news, despite overall declines in the stock markets.

Coffee Day Enterprises witnessed a remarkable surge in its share price, climbing 20% after the National Company Law Appellate Tribunal (NCLAT) nullified insolvency proceedings against the company. This decision overturned a prior order by the National Company Law Tribunal (NCLT) in Bengaluru, sparking a positive reaction from investors.

The stocks of Coffee Day Enterprises Ltd (CDEL) reached their 52-week high, trading at Rs. 25.65 and Rs. 25.53 apiece on the BSE and NSE, respectively. Despite this uptick, the broader market saw declines, with BSE Sensex dropping 360.20 points to 72,837.90 and NSE Nifty slipping 103.05 points to 22,021.65.

This latest development follows a series of legal motions surrounding CDEL after insolvency proceedings were initially resumed due to a missed deadline by the appellate tribunal. The company's financial troubles began after the demise of its founder, V G Siddhartha in 2019, prompting a strategic debt reduction effort through asset resolutions.

(With inputs from agencies.)