Coffee Day Enterprises Limited (CDEL) has seen a huge decline in shares. In Monday’s trading, the company’s shares put a lower circuit of 5%, causing it to reach an intra-day of Rs 21.38. The main reason for this decline is the resolutions of the insolvency process against the company.
What is the whole matter?
The Corporate Insolvency Solution Process (CIRP) has become effective again against CDEL operating Cafe Coffee Day Chain. The National Company Law Appellate Tribunal (NCLAT) could not pass the order within the time limit fixed by the Supreme Court of 21 February 2025, rejecting the earlier ban and restored the insolvency process.
The company informed the stock exchange that the Chennai bench of NCLAT had reserved the order after completing the hearing on the appeal last week, but since the decision in the deadline given by the Supreme Court did not come, the IRP (Insolvency Resolution Professional from 22 February 2025 ) The powers have been restored.
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Ins bankrupt proceedings were banned
The NCLAT had banned the insolvency process launched against CDEL on the petition of IDBI Trustee Services Services Limited (IDBITSL) on 14 August 2024. Idbitsl challenged the order in the Supreme Court, from where on 31 January 2025 it was directed that NCLAT would have to settle the pending appeal by 21 February 2025.
Heavy decline in shares
CDEL shares have been causing heavy losses for investors for some time:
- 20% decline in 1 month
- 45% fall in 6 months
- 10% fall in 2025 so far
- 65% decline in last one year
The stock was at Rs 350 on 19 January 2018, which has fallen by about 95% so far.
