CCD shares have been rising after the company announced divestment in the real estate unit.
Coffee Day Enterprises' share price hit an upper circuit for the fifth straight session on Friday. CCD shares have been rising after the company announced divestment in the real estate unit.
Intraday, the shares of the company surged 5.13 percent to Rs 79.90 per share on the NSE on Friday. This week, the company has gained nearly 27 percent.
After the demise of VG Siddhartha, the company announced of divesting Global Village Tech Park held by its subsidiary Tanglin Developments for an aggregate consideration of Rs 2,600-3,000 crore.
The company in its press release to the exchanges clarified, “On receipt of the consideration for the sale of Global Village after payment of required Statutory payments, the debt position of Coffee Day Group will reduce around by Rs 2,400 crore.”
Source: BSE filing
It also said that the debt position of the Group post repayment of debt out of proceeds from the sale of Global village is expected to be around Rs 1,000 crore. Meanwhile, its total debt as of August 17 stands at Rs 4,970 crore (Including debt of Sical Logistics and Magnasoft Consulting).
Recent media reports also suggested that ITC has been considering to pick a stake in the CDE Group. However, the rumours were put aside by the CDE Group in a press statement to the exchanges, “The Company wishes to inform you that the news article appearing in economic times- “ITC considering to pick stake in Coffee Day”, is factually incorrect and the company is unaware of the said news.”
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First Published: IST