Cafe Coffee Day term loans put on watch by Icra

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Published: August 1, 2019 3:47:21 AM

Rating agency Icra on Tuesday placed Rs 315 crore worth of term loans of Coffee Day Enterprises (CDEL) on watch with negative implications.

Indiabulls MF and BOI AXA MF have also invested in debt paper of some Coffee Day Group companies.

Rating agency Icra on Tuesday placed Rs 315 crore worth of term loans of Coffee Day Enterprises (CDEL) on watch with negative implications. Debt mutual funds have an exposure of Rs 193.28 crore to paper issued by the Coffee Day group, data from Value Research showed.

DSP Mutual Fund, which holds debentures of Rs 132.08 crore of Coffee Day Natural Resources (CDNRPL), said on Wednesday the scheme has an exposure to secured NCD issued by CDNRPL of face value of Rs 69 crore as on July 29, 2019. It said it was taking a 50% haircut on the exposure, which is secured by a pledge of listed shares of CDEL and a land parcel.

Indiabulls MF and BOI AXA MF have also invested in debt paper of some Coffee Day Group companies.

Moreover, two equity schemes have shares of CDE amounting to Rs 5.7 crore as in June 2019.

On Wednesday, the stock ended the day at Rs 123.25, down 19.99% on the BSE. The shares of Coffee Day Enterprise have hit lower circuit of 20% in the last two trading sessions.

Indiabulls MF has investments in debt paper issued by Tanglin Developments amounting to Rs 44.56 crore as on June 2019. A spokesperson for the fund said it was adequately covered to the tune of 2.75 times on the investments. “Tanglin is a profitable organisation and our investments are maturing in next few months, one paper is maturing in January next year. We do not have any challenge as of now and are confident of recovering our investments,” the spokesperson said.

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