Coffee Day to sell Way2Wealth Securities to Shriram Group

Bengaluru: The Coffee Day Group has signed up with the Chennai-based Shriram Group to sell one of its financial services units, Way2Wealth Securities, for an undisclosed sum as part of its efforts to dispose of non-core assets to cut debt and shore up resources for working capital.

Shriram Capital, the holding company for the group’s large nonbanking finance and insurance businesses, is said to be conducting due diligence on the proposed deal. The transaction may fetch Coffee Day Enterprises about Rs 30 crore, people briefed on the matter said.

The transaction will “help in further deleveraging the Coffee Day Group and ensure smooth operations while safeguarding the interests of all stakeholders including investors, lenders, employees and customers,” Coffee Day Enterprises said in a note to the stock exchanges on Thursday.


Way2Wealth Securities is one of three remaining CDEL subsidiaries. The other financial services firms, Way2Wealth Capital and Way2Wealth Enterprises, will remain with CDEL for the time being. The holding company sold its algo high-frequency trading arm, AlphaGrep Securities, in September last year. An email query to Shriram Capital did not elicit a response as of press time.

The Coffee Day Group is in the process of selling Global Village Tech Park in Bengaluru to US private equity giant Blackstone, having secured government approvals. The group signed up with Blackstone and Salarpuria Sattva to sell its 90-acre IT-focussed tech park for Rs 2,700 crore.

The Coffee Day Group has debt of about Rs 4,800 crore. Once the tech park sale is through, it will help the holding company clear subsidiary Tanglin Development’s debt of about Rs 1,700 crore. The Coffee Day Group is battling hard times after founder VG Siddhartha’s death in July last year. The CDEL board is trying to insulate the core coffee business from hardships by planning to sell off non-core assets.