Coffee Day Enterprises Limited (CDEL) has informed the stock exchanges about a significant development involving its material subsidiary, Coffee Day Trading Limited (CDTL). The company is set to divest its entire stake in Magnasoft Consulting India Private Limited (MCIPL), marking a key move in its strategic realignment of investments.

As per the official filing dated 19th May 2025, CDTL will sell 2,61,85,728 equity shares, representing 47.49% of the total shareholding in MCIPL. The stake is being sold to Innovic Management Services Private Limited, a third-party buyer with no affiliations to the Coffee Day promoter or group companies. The transaction is valued at Rs 23,56,71,552, translating to Rs 9 per share.

This transaction is disclosed under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and the SEBI circular SEBI/HO/CFD/CFD-PoD-1/P/CIR/2023/123 dated 13th July 2023. The sale agreement is yet to be signed but has been reported in compliance with regulatory norms.

Details of the Transaction

• Entity Selling the Stake: Coffee Day Trading Limited (CDTL), a material subsidiary of Coffee Day Enterprises Limited

• Entity Being Sold: Magnasoft Consulting India Private Limited (MCIPL), an associate company of CDTL

• Stake Sold: 47.49% of equity (2,61,85,728 equity shares)

• Buyer: Innovic Management Services Private Limited

• Consideration: Rs 23,56,71,552

• Price per Share: Rs 9

• Status: Agreement not yet signed; to be executed under mutually agreed terms

Impact on the Listed Entity

There is no impact on the management or control of Coffee Day Enterprises Limited due to this transaction. CDTL is a material subsidiary, but the shareholding being sold pertains to MCIPL, which is an associate, not a direct subsidiary of the listed entity.

Furthermore, this transaction is not classified as a related party transaction, and there are no restrictions or liabilities imposed on Coffee Day Enterprises Limited as a result.

Purpose of the Sale

The primary reason behind the deal is to monetize non-core investments and possibly realign capital toward core business activities. By exiting from its investment in MCIPL, CDTL is expected to strengthen its balance sheet and create more financial flexibility for future strategic initiatives.

Annexure Disclosure under SEBI Circular (13th July 2023)

• a) The listed entity (Coffee Day Enterprises Limited) is not a party to the agreement directly.

• b) The agreement is being entered into by Coffee Day Trading Limited, a material subsidiary of the listed entity. The counterparty, Innovic Management Services Private Limited, is not related to the listed entity. The agreement is yet to be signed.

• c) Purpose: Sale of investment in MCIPL

• d) Shareholding in buyer: Not applicable

• e) Significant terms: Sale of 2,61,85,728 shares (47.49%) at Rs 9/share for Rs 23.56 crore to Innovic

• f) Impact on control/management: Not applicable

• g) Restrictions or liabilities: None

• h) Related party transaction: No

• i) Arm’s length: Not applicable

• j) Issuance of shares: Not applicable

• k) Other disclosures: No nominee appointments or conflicts of interest identified

• l) Amendments or rescissions: Not applicable at this time

Company Overview

Coffee Day Enterprises Limited is the parent company behind the Café Coffee Day brand and operates various businesses including logistics, hospitality, and technology investments. Over recent years, the company has been actively working on debt reduction, asset monetization, and streamlining operations.

The proposed disinvestment in MCIPL aligns with these ongoing efforts, helping the company focus on its core assets and improve overall financial health.

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