Coffee Day Enterprises | NCLAT Verdict | Stock Market News
Coffee Day Enterprises shares surged by 20% on March 3, 2025, after the National Company Law Appellate Tribunal (NCLAT) overturned the insolvency plea in the Rs 228 crore default case filed by IndusInd Bank. The positive news flow came as a major relief for the company, which had been under pressure due to ongoing financial challenges.
Background of the Case
The insolvency plea was filed by IndusInd Bank against Coffee Day Global, a subsidiary of Coffee Day Enterprises, over a loan default of Rs 228 crore. The case had been dragging on for several months, pushing the company’s shares into a lower circuit for four consecutive sessions.
However, the NCLAT’s decision to set aside the insolvency proceedings gave a fresh boost to investor confidence, resulting in a sharp rebound in the stock price.
Market Reaction
Following the verdict, Coffee Day Enterprises’ shares hit the upper circuit of 20%, closing at Rs 54.60 on the BSE. The stock had been locked in the 5% lower circuit for the past four consecutive trading sessions amid uncertainty around the insolvency case.
Expert Opinion
“The NCLAT’s ruling is a significant relief for Coffee Day Enterprises, allowing the company to restructure its debt and explore future business opportunities. The stock may see further upside if the company successfully implements its turnaround plan,” said Anand Mehta, Senior Analyst at ICICI Securities.
Outlook for Coffee Day Enterprises
With the insolvency plea overturned, Coffee Day Enterprises is expected to focus on debt restructuring and operational recovery. Analysts believe that the company’s performance will largely depend on its ability to improve cash flows and manage outstanding debts.
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