Coffee Day share price: The scrip has a one-year beta of 1.50, indicating high volatility. 
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Coffee Day share price: The scrip has a one-year beta of 1.50, indicating high volatility. Shares of Coffee Day Enterprises Ltd on Monday continued to fall for the third straight session. The stock cracked 20 per cent to hit its lower price band of Rs 31.77 over a previous close of Rs 39.71. Around 33.55 lakh shares changed hands today on BSE, which was way more than the two-week average volume of 5.69 lakh shares. Turnover on the counter stood at Rs 11.84 crore, commanding a market capitalisation (m-cap) of Rs 681.92 crore. There were 3,35,626 sell orders today against buy orders of 23,872 shares.
Today's massive drop in the share price came after it was reported that the company's court has admitted Coffee Day Global (operator of Coffee Day Ent) for bankruptcy process. The counter has lost around 25 per cent in the last five sessions.
Coffee Day Global was admitted for corporate insolvency by the Bengaluru bench of National Company Law Tribunal (NCLT), The Economic Times reported today. Last week, the tribunal passed an oral order in which it admitted the unlisted company for insolvency based on a petition filed by IndusInd Bank.
Later in the day, Coffee Day confirmed that it has been admitted for a bankruptcy process. "This is to inform you that, the application filed by one of the lenders against the material subsidiary Coffee Day Global Limited before National Company Law Tribunal (NCLT), Bengaluru, has been admitted (oral order) under Section 7 of Insolvency and Bankruptcy Code, 2016 for initiating Corporate Insolvency Resolution Process (CIRP) for Rs 94 crore. However, the Material subsidiary is waiting for the written order from the NCLT, Bengaluru Bench. Further, the Material Subsidiary has informed the Company that, it will take the required legal action in this regard," it stated.
The stock was last seen trading higher than the 100-day moving averages but lower than the 5-day, 20-, 50- and 200-day moving averages. The counter's 14-day relative strength index (RSI) came at 39.83. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company's stock has a negative price-to-earnings (P/E) ratio of 272.54 against a price-to-book (P/B) value of 0.27. The scrip has a one-year beta of 1.50, indicating high volatility.
Coffee Day Global was promoted by VG Siddhartha, who died of suicide in 2019. It was then reported that he had left behind a suicide note addressed to the board of directors and Coffee Day family wherein he revealed that he was in deep debt.
As per the company's annual report, its outstanding debt stood at Rs 67.30 crore from IndusInd Bank as on March 31, 2022.
The tribunal admitted the company after the negotiations deal between the IndusInd bank and Coffee Day Global collapsed, the ET report said.
In January 2023, the Securities and Exchange Board of India (Sebi) had slapped a penalty of Rs 26 crore on the company for "diversion of funds from subsidiaries to a company related to promoters".
Sebi, in its order, noted funds worth Rs 3,535 crore were diverted that the diversion of funds from seven subsidiaries of Coffee Day Enterprises to Mysore Amalgamated Coffee Estates. Coffee Estates is an entity related to promoters of Coffee Day Enterprises.
The company has seven subsidiaries: Coffee Day Global, Tanglin Retail Reality Developments, Tanglin Developments, Giri Vidhyuth (India), Coffee Day Hotels and Resorts, Coffee Day Trading and Coffee Day Econ.
Meanwhile, Indian equity benchmarks traded lower in late deals today amid weak global cues. The domestic indices were dragged by energy, consumer durables and metal stocks.
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