Coffee Day's Sical Logistics put on sale

September 9, 2019: In a bid to pare debt, Coffee Day Enterprises Ltd (CDEL), founded by late coffee tycoon VG Siddhartha, has put its multimodal logistics provider Sical Logistics up for sale. The development was reported by the daily Livemint.

The report quoted unnamed sources confirming that CDEL has hired ICICI Securities as adviser for the potential transaction, which could see the group holding company raise Rs1,000-1,500 crore.

CDEL has a consolidated debt of aroud Rs4,400 crore. It will sell the Global Village Tech Park, which will bring down the debt to around Rs2,000 crore. A part of these proceeds will go to CDEL's books towards working capital requirements.

Sical Logistics Ltd is currently trading at Rs27.05 up by Rs1.25 or 4.84 percent from its previous closing of Rs25.80 on the Bombay Stock Exchange. CDEL is trading at Rs63.95 up from Rs60.95 or 4.92 percent from its its previous closing.