Coffee Day Enterprises will be suspended from trading from February 3 if it doesn’t declare its quarterly results by January 29.

BSE NSE warn Coffee Day to declare results or be suspended from trading on exchanges
Money Coffee Day Wednesday, January 15, 2020 - 15:22

Making matters worse for Coffee Day Group, the stock exchanges, BSE and NSE have issued a warning to Coffee Day Enterprises Limited that the company’s stocks will be barred from trading on the bourses if they fail to declare the results for the first quarter as well as the half-yearly results by January 29, as per a Times of India report. The ban on trading will be effective February 3, 2020.

These warnings have been issued based on listing norms laid down by the Securities and Exchange Board of India (SEBI).

Companies not declaring and disclosing the results within the stipulated time are fined for the delay. Apart from CDEL, CG Power and Industrial Solutions have also not filed their returns with the exchanges and will face similar action.

The troubles for CDEL and the Café Coffee Day Group began after the demise of the founder Chairman of the group, VG Sidharth. Possibly there were issues even when he was still around. It was after he passed away that the extent of debts owed by the group companies to various lenders came out. In just matter of six months, the promoters’ quota of shares has come down to just 17% from 54%.

The company's shares too, have gone down by 68%, and are currently trading at Rs 39.65 a share.

This will put added pressure on the promoters to keep the companies in their fold. There are many investors like the KKR Group interested in the assets of CCD.

Coffee Day Enterprises most recently announced that it signed an agreement to sell Global Village Techpark to Blackstone Group and Sallapuria Sattva Group for Rs 2,700 crore in an all-cash deal, which is stalled as Yes Bank is yet to sign off on the deal.

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