Coffee Day plans to sell Way2Wealth to pare debt

Coffee Day Group announced that it has entered into a definitive agreement to sell its brokerage business, Way2Wealth Securities to Shriram Ownership Trust for an undisclosed sum as parts of its effort to dispose non-core assets, in order to cut debt and boost working capital.

The company is battling tough times after the death of the founder VG Siddhartha in July last year. The board is trying to insulate the core coffee business from hardship by planning to sell-off non-core assets and this agreement is expected to help in further deleveraging the Coffee Day Group by ensuring smooth operations while safeguarding the interests of all stakeholders including investors, lenders, employees and customers.

Coffee Day Enterprises Limited sells coffee beans and provides hospitality services. The company's segments include coffee and related business, leasing of commercial office space, hospitality services, financial services and integrated multi modal logistics.

At 2 pm on Friday, the stock is trading at Rs 33.80, up by 4.97 per cent or Rs 1.60 per share. The 52-week high is recorded at Rs 317.90 and the 52-week low is Rs 26.60 on BSE.