Shares of Coffee Day Enterprises rallied in early trade on Wednesday to hit an intra-day high of Rs. 76.35, up 5% against its previous close of Rs. 72.75 on the BSE. The surge in share price came after the company inked a definite agreement with entities owned by Blackstone Group and the Salarpuria Sattva Group for investing in GV Techparks Private Limited, which is a fully-owned subsidiary of Tanglin Development (TDL).
The financial consideration of the transaction is valued at Rs. 2700 crore subject to some of the closing adjustments and its completion depends on the transfer of Global Village TechPark from TDL to GV Techparks.
Further, the close of the deal is dependent on some of the condition that includes regulatory approvals.
With this transaction, debt of the company will be hugely pared which was disclosed to be at around Rs, 4,970 crore as on August 17.
In respect of first share of investment, the likely date of deal closure is on or before October 31.
Shares of Coffee Day Enterprises last quoted at Rs. 74.70, up Rs.1.95 or 2.68%.