Singapore’s two private equity funds can invest in Cafe Coffee Day, a debt of around Rs 3000 crore on the company

  • Several rounds of talks had been held between CDGL and the two fund homes
  • Investment can be carried out by equity infusion or structured credit score

Dainik Bhaskar

Jun 08, 2020, 02:36 PM IST

new Delhi. Two Singapore private equity (PE) funds can invest in Coffee Day Global Limited (CDGL), a subsidiary of Cafe Coffee Day, India’s largest espresso retail chain company. Discussions are going on between the fund homes and CDGL for this funding. The company has been making an attempt for a very long time to pay its debt. It additionally entails promoting stakes.

There had been a number of rounds of dialog by video conferencing

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Singapore-based private equity companies SSG Capital Management and Affirm Capital (previously Standard Chartered PE) are in talks with CDGL’s administration. CDGL Listed Company is a subsidiary of Coffee Day Enterprises. CDGL manages 1470 Cafe Coffee Day shops, 59,500 tea-coffee merchandising machines and different retail companies throughout the nation. Afrm, KKR and NSR have a stake in CDGL. Several rounds of discussions have taken place between the Coffee Day Group’s prime administration and SSG-Afrm by video conferencing about this potential funding. Malvika Hegde, spouse of the late VG Siddharth, founder of Coffee Day, has additionally been concerned in the dialog.

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Investment can be carried out by equity infusion

According to ET’s report, this funding can be by structured credit score or web equity infusion. However, it’s but to be determined. According to sources aware of the matter, the two fund homes might suggest working capital infusions to renew operations at full capability, akin to re-branding of the espresso retail enterprise. According to SLG sources, the funding will probably be carried out solely when the current private equity funds additionally take part. According to the supply, three PE buyers are in talks and any recent infusions will happen solely after the 4 have agreed.

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About three thousand crore rupees mortgage on espresso day

CDGL has lengthy been burdened with debt. As on 31 March 2020, the company had a debt of about Rs 3000 crore. CDGL founder VG Siddharth dedicated suicide by leaping into a river in July final yr beneath strain from debt. Earlier, Siddharth had written to the company’s workers and the board of administrators, saying that I had failed as an entrepreneur. I need to apologize for not assembly the expectations of all those that trusted me.

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