Coffee Day shares crash 17% after IDBI Trusteeship’s lawsuit at NCLT for alleged ₹228 crore default
Stock market today: Coffee Day shares have been under sell off heat since early morning deals. Coffee Day share price today opened downside and went on to hit intraday low of ₹43.35 apiece on NSE, logging more than 17 per cent dip within an hour of early morning deals. On Friday, Coffee Day Enterprises had informed Indian stock market bourses after the market close that IDBI Trusteeship Services Limited has filed application against the company at National Law.
According to stock market experts, this slide in Coffee Day shares is because of the IDBI Trusteeship plea at NCLT for insolvency proceedings against the company for alleged ₹228 crore default.
Why Coffee Day shares are nosediving?
On why Coffee Day shares are nosediving, Arun Kejriwal, Founder at Kejriwal Research and Investment Services said, “This crash in Coffee Day shares is because of the IDBI Trusteeship’s application at NCLT asking for insolvency proceedings against the company.”
On Friday after the market close, Coffee Day Enterprises had informed Indian bourses about the IDBI Trusteeship’s application at NCLT citing, “This is to inform you that an application has been filed against the Company under Section 7 of the Insolvency and Bankruptcy Code, 2016 read with Rule 4 of the Insolvency and Bankruptcy Rules, 2019 by IDBI Trusteeship Services Limited before the National Company Law Tribunal, Bengaluru for alleged default of ₹228,45,74,180/-.”
“The Company is seeking appropriate legal advice and will take all appropriate steps to protect its interest in the aforesaid matter,” coffee Day Enterprises concluded.
Expecting further downside in Coffee Day shares, Sumeet Bagadia, Executive Director at Choice Broking said, “Coffee Day shares are looking weak on chart pattern. We can see more downside in the stock and it may go down towards ₹40 to ₹38 per share zone whereas it is facing hurdle at ₹50 to ₹52 zone.” Sumeet Bagadia of Choice Broking advised Coffee Day shareholders who have high risk appetite to hold the stock maintaining stop loss at ₹38. For others, he advised exit on rise strategy as the stock may take time to regain its lost sheen.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.
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Updated: 11 Sep 2023, 10:26 AM IST
Ganesh
http://ganesh@finplay.inFinance enthusiast, Mutual fund expert.