The stock had been locked in a lower circuit for four consecutive sessions before witnessing a sharp rebound on 3 March
After the Chennai bench of the National Company Law Appellate Tribunal (NCLAT) ruled in its favour by dismissing a bankruptcy plea filed by IDBI Trusteeship over an alleged Rs 228 crore default, the shares of Coffee Day Enterprises soared 20 per cent to hit the upper circuit at Rs 25.65 apiece on 3 March.
The legal battle began when the Bengaluru bench of the National Company Law Tribunal (NCLT) admitted IDBI Trusteeship Services’ plea on 8 August, 2024, and appointed an interim resolution professional (IRP) to take control of the debt-ridden café chain. Coffee Day’s board swiftly moved the NCLAT, which stayed the Corporate Insolvency Resolution Process (CIRP). However, IDBI Trusteeship challenged the stay before the Supreme Court, which directed the Chennai bench of NCLAT to act on the pending appeal by 21 February 2025. If the deadline was missed, the insolvency proceedings would have resumed automatically.
In February 2025, due to the NCLAT’s failure to pass an order within the deadline, the insolvency process against Coffee Day Enterprises resumed. However, with the latest ruling by NCLAT dismissing the plea, the insolvency proceedings are now set to be overturned.
The stock had been locked in a lower circuit for four consecutive sessions before witnessing a sharp rebound on 3 March, driven by the positive news. Despite the surge, Coffee Day Enterprises’ shares remain significantly below their 52-week high of Rs 74.54 and are trading near the 52-week low of Rs 21.38.
