The share price of Coffee Day Enterprises surged over 4 percent intraday on Wednesday after the company said it executed a deal with private equity major Blackstone and Salarpuria Sattva Group for sale of Global Village Tech Park at an enterprising value of Rs 2,700 crore.

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At 10:44 am, Coffee Day’s shares were trading 2.68 percent higher at Rs 74.70 per share on the NSE. Intraday, the share price rose 4.94 percent to its day’s high of Rs 76.35.

The company’s BSE regulatory filing mentioned that the transaction will take place in two tranches. The first tranche will be worth Rs 2,000 crore and is expected to be completed on or before October 31, 2019, while the date of the second tranche has not been declared.

The company said that the rationale behind this proposed deal is to focus on its core business and reduce the debt of the Coffee Day Group. As on August, 2019, the company’s total debt stood at Rs 4,970 crore.

With this sale, the company is expecting to reduce the debt by about Rs 1,000 crore.

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