Shares of Sical Logistics were locked in the upper circuit band of 5 per cent at Rs 27.05 apiece, after reports said the parent firm Coffee Day Enterprises (CDEL) has decided to sell entire stake in the company to pare company's debts.
"Coffee Day Enterprises has hired ICICI Securities as adviser for the potential transaction, which could see the group holding company raise Rs 1,000-1,500 crore," business dailyMint reported, quoting unnamed sources.
“CDEL’s debt at the consolidated level is around Rs 4,400 crore. The sale of the Global Village Tech Park will bring down this debt to around Rs 2,000 crore, while a part of the proceeds from this sale will go to CDEL’s books towards working capital requirements," the report said.
In an exchange filing, however, CDEL said the company has appointed IDFC Securities to identify the strategic options for CDEL, including "divestment of its holding in Coffee Day Global and any other group-company (other than SICAL Logistics Limited). READ FILING HERE
After its founder VG Siddhartha's death in July, promoters of the coffee chain have been exploring possibilities of inducting an investor in the debt-laden company. The holding company includes Coffee Day Global (coffee business), Sical Logistics (integrated logistics), Tanglin Developments (real estate), Way2Wealth (financial services) and Coffee Day Hotels and Resorts (hospitality).
At 11:15 am, shares of Coffee Day Enterprises, too, were locked in the upper circuit band of 5 per cent at Rs 63.95. In compoarison, the benchmark S&P BSE Sensex was trading 0.42 per cent higher.