Shares of Coffee Day Enterprises plunged 5 percent on BSE on September 19 amid reports that the lenders to the company invoked pledged shares.
CNBC TV18 reported that lender to Coffee Day invoked pledge on 4.95 percent stake from September 9-11.
The debt-ridden firm on September 18 said that it had raised Rs 2,700 crore via investments in its Bangalore IT park.
The company has executed the definitive agreements with entities belonging to Blackstone Group and the Salarpuria Sattva Group for investment in GV Techparks Private Limited, a wholly-owned subsidiary of Tanglin Development (TDL).
The closing of the deal is subject to the conditions, including regulatory approvals.
This transaction will substantially bring down the debt of the group which disclosed to be Rs 4,970 crore on August 17, the company added.
The expected date of completion of the transaction is on or before October 31, for the first tranche of investment.
Shares of the company traded 4.98 percent down at Rs 68.65 on BSE around 1500 hours.
Discover the latest business news, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!