InvestorQ : Why is Coffee Day stock fallen so sharply in the last few months and should I hold on to the stock?
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Why is Coffee Day stock fallen so sharply in the last few months and should I hold on to the stock?

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Anamika Sodhani answered.
2 years ago
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The promoter of Coffee Day has been trying to raise money for the huge debt that is currently under. He had also recently sold his fairly large stake in Mindtree to L&T. Due to his huge debt; the promoter is unable to run the company and is looking for buyers. There have been some indications that Coca Cola may be interested in the company. The promoter is looking at a valuation of Rs.10,000 crore for the company, which is probably is what is holding back potential buyers. For now it is better to stay off the company till there is clarity on who will be the new owners of the company and whether it will be able to see profitable growth.

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