Shares of Coffee Day Enterprises Ltd saw a significant 20 percent surge on Wednesday. This remarkable uptick followed a resolution between Coffee Day Global Ltd (CDGL) and its financial creditor, IndusInd Bank. Consequently, the National Company Law Appellate Tribunal (NCLAT) reversed the insolvency order against the company that owns and manages the well-known Cafe Coffee Day coffee chain.

Read More: Coffee Day Global reaches settlement with IndusInd Bank, NCLAT ends insolvency proceedings

The stock exhibited an impressive rally of 19.77 percent, eventually closing at INR 51.26 per share on the BSE. Throughout the day’s trading session, it surged by 20 percent, reaching INR 51.36, which corresponds to its upper circuit limit.

On the NSE, it experienced a notable 20 percent surge, reaching INR 51.30 per share, which marked its upper circuit limit.

In terms of trading volume, the company witnessed the exchange of 31.18 lakh shares on the BSE and more than 2 crore shares on the NSE throughout the day.

The legal representatives for CDGL and IndusInd Bank conveyed news of the settlement to the Chennai bench of the National Company Law Appellate Tribunal (NCLAT) on Wednesday. They requested permission to withdraw the insolvency litigations in light of this development.

A two-member bench, consisting of Justice M Venugopal and Shreesha Merla, duly acknowledged their presentations and proceeded to nullify the order that had admitted CDGL to insolvency.

According to the FY23 annual report of Coffee Day Enterprises Ltd (CDEL), the parent company, CDGL boasts ownership of 469 cafes across 154 cities, along with 268 CCD Value Express kiosks. Furthermore, it actively managed a network of 48,788 vending machines that dispensed coffee in corporate workplaces and hotels under its brand.