Shares of Coffee Day Enterprises Ltd (CDEL) jumped 5% upper circuit today on Tuesday, March 18, after the company announced a settlement agreement to clear ₹205 crore in outstanding dues owed to two debenture holders. The move is part of Coffee Day’s ongoing debt reduction efforts, aimed at improving financial stability.
Debt Settlement Details
In a regulatory filing, Coffee Day Enterprises said that the repayment will be made in three tranches, with ₹55 crore coming from the sale of 12.41% pledged and invoked shares of Coffee Day Global Ltd to a third party. The company’s Audit Committee and Board approved the settlement agreement on March 17, 2025.
CDEL stated that this step reinforces its commitment to long-term financial stability and stakeholder value. The company emphasized that this move is in line with its broader debt reduction strategy, which has been ongoing since the demise of its founder VG Siddhartha in July 2019. Over the years, CDEL has actively pared down debt through asset resolutions and significantly scaled down operations.
Market Reaction & Stock Movement
As of 9:15 am the shares were trading 4.97% upper circuit at ₹24.49 on NSE
Company’s Financial Recovery
Since its financial troubles in 2019, the company has been focusing on reducing liabilities by selling assets and restructuring operations. This debt settlement further strengthens its commitment to stabilizing its financial position.
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