Coffee Day Denies Report Of ITC Buying Stake, Shares Rise 5%

Shares in Coffee Day Enterprises, the operator of the Cafe Coffee Day (CCD) chain of restaurants, rose nearly 5 per cent on Thursday. The fourth straight day of gain in CCD shares came a day after the company denied reports that suggested cigarette major is considering taking a stake in it. Coffee Day Enterprises shares ended 4.95 per cent higher at Rs 76.40 apiece on the BSE. On the National Stock Exchange (NSE), the CCD shares closed 4.97 per cent higher at Rs 76.10 apiece. 

Stock exchange BSE on Wednesday evening sought clarification from Coffee Day Enterprises on the report. In response to the BSE later on the same day, Coffee Day Enterprises said the news is “factually incorrect and the company is unaware of the said news”.

Coffee Day Enterprises also said it will continue to make “all requisite disclosures/intimations to the stock exchanges in compliance with the requirements of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended, including Regulation 30 thereunder”. 

News agency Bloomberg had reported citing people familiar with the matter that ITC, Asia's largest cigarette maker by market value, was considering a bid to buy a stake in Coffee Day Enterprises as it sought to diversify away from tobacco products.

As of Thursday's closing price, Coffee Day shares have risen 21.37 per cent in four consecutive sessions. The recovery in Coffee Day stocks comes after 16 straight sessions of decline. 

The Coffee Day group said last week that its total outstanding debt was Rs. 4,970 crore.