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Coffee Day Enterprises shares nosedives over 19%

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During the day, Coffee Day Enterprises’ stock crashed 20% to hit its lower circuit of Rs 31.77 and Rs 31.80 on the BSE and NSE

New Delhi: Shares of Coffee Day Enterprises nosedived more than 19% on Monday after the NCLT admitted a plea against its subsidiary Coffee Day Global Ltd for initiating corporate insolvency resolution process.

Coffee Day Enterprises shares plunged 19.40% to close at Rs 32 on the NSE.

A similar movement was also seen on the BSE, where the scrip tumbled 19.26% to settle at Rs 32.06.

During the day, the stock crashed 20% to hit its lower circuit of Rs 31.77 and Rs 31.80 on the BSE and NSE, respectively.

In volume terms, more than 2.11 crore equity shares were traded on the NSE and 34.87 lakh shares on the BSE.

On Monday, the 30-share BSE Sensex finished 299.48 points lower at 66,384.78 points while Nifty fell 72.65 points to end at 19,672.35 points.

In a regulatory filing on Monday, Coffee Day Enterprises Ltd said the National Company Law Tribunal has admitted a plea against Coffee Day Global Ltd (CDGL), which owns and operates popular chain Cafe Coffee Day, for initiating corporate insolvency resolution process.

The Bengaluru bench of the NCLT passed an order over a plea filed by a financial creditor of the company, claiming dues of Rs 94 crore, Coffee Day Enterprises Ltd, CDGL’s parent company added.

Coffee Day Enterprises is in trouble after the death of founder Chairman V G Siddhartha in July 2019. It is paring its debts through asset resolutions and has significantly scaled it down from the time the trouble started.

Earlier this year, capital markets regulator Sebi had also levied a penalty of Rs 26 crore on CDEL for failing to stop the diversion of Rs 3,535 crore from the company’s subsidiary Mysore Amalgamated Coffee Estates Ltd (MACEL), which is an entity related to promoters

CDEL is trying to recover the amount legally from MACEL.

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