Sovereign Gold Bonds: Deadline Approaches for Premature Redemption of Select Tranches

What Are Sovereign Gold Bonds?

Sovereign Gold Bonds (SGBs) are government-backed securities issued by the Reserve Bank of India (RBI) on behalf of the Government of India. These bonds are denominated in grams of gold and serve as an alternative to holding physical gold. Investors benefit not only from the potential appreciation in gold prices but also receive a fixed annual interest of 2.5%, paid semi-annually.

On maturity or redemption, the investor receives the current market value of gold directly into their bank account.

Understanding Premature Redemption in SGBs

While SGBs come with a fixed maturity period of eight years, investors are allowed to redeem them prematurely, beginning after the fifth year. However, this early exit is only available on specific dates notified by the RBI each year.

These redemption windows are carefully scheduled and limited to particular bond series. Missing the scheduled deadline could mean waiting up to a full year for the next available redemption window.

Tranches Eligible for Premature Redemption in April–May 2025

The RBI has released the redemption schedule for four specific SGB tranches in April and May 2025. If you hold any of the following series, you must act within the prescribed application periods to redeem your investment early.

SGB 2017-18 Series III

  • Redemption Date: April 16, 2025

  • Application Window: March 17 to April 7, 2025

SGB 2017-18 Series IV

  • Redemption Date: April 23, 2025

  • Application Window: March 24 to April 15, 2025

SGB 2017-18 Series V

  • Redemption Date: April 30, 2025

  • Application Window: March 31 to April 21, 2025

SGB 2017-18 Series VI

  • Redemption Date: May 6, 2025

  • Application Window: April 5 to April 28, 2025

How to Check If Your Bond Is Eligible

If you are considering premature redemption, the first step is to identify which tranche your SGB belongs to. You can verify this by checking the issue date and series of your bond certificate or demat statement.

Once identified, refer to the redemption schedule and ensure that your application is submitted within the respective deadline.

Where to Submit Redemption Requests

To redeem your SGB prematurely, you must submit your request through any of the following platforms:

  • NSDL or CDSL (for demat account holders)
  • RBI Retail Direct Portal
  • Bank or Post Office where the bond was initially purchased

Ensure all documentation is complete and the application is submitted well before the last date to avoid any technical or procedural delays.

Conclusion 

  • Missing the application window means waiting for the next eligible redemption date, which could be up to a year away.
  • Redemption proceeds are paid based on the prevailing gold price on the date of redemption.
  • Regular interest income (2.5% annually) continues to be credited until redemption.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Lowest Mutual Fund Equity Deployment Since July 2023 Recorded in March 2025

The mutual fund industry’s net investment into the Indian equity market fell sharply to ₹13,458.85 crore in March 2025, according to the latest data released by the Securities and Exchange Board of India (SEBI). This marked the lowest level of monthly deployment since July 2023, when the figure stood at ₹7,707 crore.

This drop follows two months of substantial inflows—₹48,000 crore in February and ₹57,700 crore in January—making March’s investment a notable deceleration.

Peak Investments Seen in October 2024

The highest mutual fund deployment into equities in recent times was recorded in October 2024, reaching ₹90,770 crore. This surge in investment was fuelled by a rally in the Indian stock market towards the end of September, when benchmark indices touched fresh all-time highs.

Since July 2023, monthly investments by mutual funds had consistently remained above ₹15,000 crore until the dip witnessed in March 2025.

Market Correction and Global Headwinds Behind the Decline

The dip in equity investment comes amid a broader market correction. Indian equity indices experienced a decline of nearly 15% from their September 2024 highs, before showing signs of recovery in March. This correction, driven by a confluence of global and domestic factors, may have led mutual funds to adopt a more cautious approach.

Geopolitical developments and external pressures, such as policy changes in major economies, also contributed to a decline in investor sentiment. One of the notable recent triggers was US President Donald Trump’s imposition of fresh tariffs, which rattled global markets and exerted downward pressure on Indian equities.

April 2025 Trends Indicate Continued Caution

As of the initial days of April 2025, mutual funds have deployed just ₹5,428 crore into equities. While it’s too early to predict the month’s final tally, the slow pace of investment indicates that market participants remain wary.

Despite the slight recovery observed in March, the caution exercised by mutual funds suggests that uncertainty still lingers in the market, potentially influenced by macroeconomic signals, global cues, and upcoming domestic events.

Conclusion

The significant reduction in mutual fund investment into the Indian equity market in March 2025—its lowest point in eight months—reflects a cautious sentiment among fund managers amid volatile market conditions. While inflows surged to record levels in previous months, current deployment patterns highlight the impact of both global uncertainty and domestic market correction on institutional investment strategies.

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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Mutual Fund investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Jaiprakash Associates Hits Upper Circuit Amid Insolvency Proceedings: List of 26 Bidders Including Adani, Vedanta, and Patanjali

Jaiprakash Associates Limited (JAL), a diversified infrastructure conglomerate, is currently undergoing the Corporate Insolvency Resolution Process (CIRP) following a significant loan default. The National Company Law Tribunal (NCLT), Allahabad Bench, admitted the company into CIRP on June 3, 2024. This development came after JAL defaulted on its financial obligations to lenders, triggering the need for a resolution process under the Insolvency and Bankruptcy Code (IBC).

Mounting Debt and Creditor Claims

As of March 11, 2025, Jaiprakash Associates had outstanding loans of ₹55,409.28 crore to various financial institutions. The total claims filed by creditors, however, have touched ₹57,185 crore. The National Asset Reconstruction Company Ltd (NARCL) now leads the list of claimants, having taken over stressed loans from a consortium of lenders led by the State Bank of India (SBI).

A Closer Look at the Real Estate Assets

Despite its financial troubles, JAL holds valuable real estate assets that make it an attractive prospect for acquisition. These include:

  • Jaypee Greens, Greater Noida

  • Jaypee Greens Wishtown, Noida

  • Jaypee International Sports City, located near the upcoming Jewar International Airport

These prime locations, situated around the National Capital Region, continue to draw significant interest from real estate and infrastructure players.

A Star-Studded List of Bidders

According to a report, a total of 26 entities have submitted their Expression of Interest (EOI) to take over the bankrupt JAL. The list comprises major industry names, including:

Other notable names include Asset Reconstruction Company, Authum Investment & Infrastructure, GMR Business & Consultancy LLP, Sigma Corporation (India), and Suraksha Group – the latter having recently taken over Jaypee Infratech, a subsidiary of the Jaypee Group.

Suraksha Group’s Role and Past Acquisitions

Interestingly, Suraksha Group, now a potential bidder for JAL, previously acquired Jaypee Infratech through a similar insolvency process. The group is currently working on completing over 20,000 delayed residential units in Noida and Greater Noida, which were left unfinished by Jaypee Infratech.

Share Price Reaction

Following the buzz around the potential acquisition, Jaiprakash Associates’ share price hit the upper circuit on 8 April 2025. At 9:47 AM on the NSE, the stock was trading locked at ₹3.72 apiece.

Conclusion 

With a pool of prominent bidders and valuable real estate assets in strategic locations, the future of Jaiprakash Associates now hinges on the outcome of the insolvency proceedings. The final resolution could reshape the NCR real estate landscape and mark a significant transition for one of India’s long-standing infrastructure players.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Revolt Motors Expands to 200 Dealerships; Share Price of RattanIndia Gains Over 2.5%

Revolt Motors, a leading electric motorcycle brand in India and a subsidiary of RattanIndia Enterprises Limited, has achieved a significant milestone by expanding its dealership network to 200 locations—doubling from 100 outlets within just a year. Over the past 2 years, the company has increased its network tenfold, reflecting the surging demand for sustainable 2-wheeler transport across the country.

The market responded positively to this development, with the share price of RattanIndia gaining over 2.5% to ₹39.62 as of 10:01 AM on April 8, 2025.

Nationwide Reach Across 23 States

Revolt is now operational in 23 Indian states and union territories, including key markets like Maharashtra, Karnataka, Tamil Nadu, Uttar Pradesh, and Gujarat. The expansion goes beyond major cities, tapping into Tier 2 and Tier 3 cities, highlighting a nationwide shift towards electric mobility.

Ms Anjali Rattan, Chairperson of RattanIndia Enterprises, remarked, “Electric mobility is no longer a metro phenomenon; it’s becoming the preferred choice for daily commuting across the country.” The company now aims to reach 400 dealerships by the end of FY26.

Taking Electric Mobility Beyond Borders

Following a successful international debut in Sri Lanka last year, Revolt is now preparing to launch in Nepal in 2025, with further plans to strengthen its global footprint. This marks a significant step in Revolt’s strategy to position itself as a key player in the global EV market.

Customer Experience at the Core

Revolt dealerships not only serve as retail points but also offer a comprehensive experience, including test rides, expert guidance, and after-sales service. Customers can explore the latest models—RV400, RV1, and RV1+—renowned for their smart features, performance, and affordability.

About Revolt Motors and RattanIndia Enterprises

Established in 2017, Revolt Motors is known for launching India’s first AI-enabled electric motorcycle and continues to innovate in the EV space. The company also ensures the availability of genuine spare parts and accessories through its dealerships.

RattanIndia Enterprises Limited, the parent firm, is a publicly listed entity driving innovation-led businesses in sectors such as electric mobility, e-commerce (Cocoblu Retail), fashion (Neo Brands), fintech (WeFin), and drone technology (Neosky), with the mission of shaping future-ready solutions for India.

Conclusion

With an expanding footprint, Revolt Motors is steadily charging ahead in India’s evolving electric mobility landscape.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

8th Pay Commission: Possible Salary Changes Through Fitment Factor and DA Merger

In January 2024, the Government of India announced the formation of the 8th Central Pay Commission, set to replace the existing 7th Commission whose term concludes in December 2025. The next step in this process involves appointing a three-member panel, including a chairperson, to determine the structure of future central government salaries.

Amid this development, discussions have intensified around two key components—the fitment factor and the merger of Dearness Allowance (DA) with basic pay. These elements play a critical role in the periodic restructuring of pay scales for central government employees.

What Is the Fitment Factor?

The fitment factor is a multiplier applied to the existing basic pay to determine the revised salary under a new pay commission. It is designed to ensure a uniform and equitable pay hike across various pay levels.

This factor typically reflects:

  • The existing basic pay,

  • The total DA accrued at the time,

  • And an additional percentage hike to account for real wage growth.

For instance, if the fitment factor is 2.57, an employee with a basic pay of ₹10,000 would see their revised pay become approximately ₹25,700. This figure results from adding the accumulated DA and a modest increase to the original basic.

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Role of DA in Pay Revision

Dearness Allowance (DA) is an essential part of a government employee’s earnings, aimed at offsetting inflation. Over time, as inflation rises, so does the DA percentage. By the time a new pay commission is implemented, the accumulated DA becomes significant.

In most previous pay commissions, although not always explicitly stated, DA was merged with the basic pay before applying the fitment factor. This practice created a consolidated base for calculating revised salaries.

Lessons from Previous Pay Commissions

5th Pay Commission (1996)

  • DA at the time: ~74%

  • Fitment Factor Used: 1.86

  • Impact: The DA was merged into the basic, and a hike of approximately 28–30% was applied, resulting in the 1.86 multiplier.

6th Pay Commission (2006)

  • DA at the time: ~115%

  • Fitment Factor Used: 1.86 (plus the introduction of grade pay)

  • Impact: Although the merger of DA wasn’t explicitly mentioned, the new pay structure—including grade pay—implied DA was absorbed into the revised pay.

7th Pay Commission (2016)

  • DA at the time: ~125%

  • Fitment Factor Used: 2.57

  • Impact: The fitment factor included 100% of basic pay, 125% DA, and an additional 14.22% hike.

Example Calculation:

  • Old basic pay = ₹10,000

  • DA (125%) = ₹12,500

  • Subtotal = ₹22,500

  • Additional 14.22% hike = ₹3,199.5

  • Final revised pay ≈ ₹25,700

  • Effective fitment factor = 2.57

Comparative Table: DA and Fitment Factors Over Time

 

Pay Commission DA at Time of Merger Fitment Factor Used
5th CPC ~74% 1.86
6th CPC ~115% 1.86 + Grade Pay
7th CPC ~125% 2.57

 

What to Expect from the 8th Pay Commission?

Based on historical precedents, it is likely that the 8th Pay Commission will follow a similar approach—merging DA with basic pay before applying a fitment factor. While the exact numbers remain to be decided, this methodology has consistently been used to balance inflationary pressure with real wage increments.

The calculation of a new fitment factor will likely be informed by:

  • The accumulated DA up to the time of implementation,

  • Economic conditions,

  • Budgetary allocations,

  • And expectations of employee unions.

Conclusion

Historically, central government salary revisions under pay commissions have adhered to a consistent pattern—merging DA with the basic pay and then applying a fitment factor that includes a modest real wage increase.

Understanding this pattern offers useful insight into how the 8th Pay Commission may structure salary revisions. While official details are yet to be released, past practices provide a reasonable framework for anticipating what lies ahead.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

When Will India Reach $20,000 GDP Per Capita?

GDP per capita is a widely used economic indicator that measures the average economic output (GDP) per person in a country. It is calculated by dividing a nation’s total gross domestic product by its population. This metric offers a clearer picture of individual prosperity and is often used as a benchmark to compare the economic development of countries.

As of March 2024, India’s GDP per capita was approximately ₹2.16 lakh, or about $2,500. For India to be recognised as a developed economy, the government has set a vision of achieving a GDP per capita of $20,000 by the year 2047—marking 100 years of independence.

How Have Other Countries Fared?

To understand how feasible this goal is, it is helpful to look at how long other nations took to travel from $2,500 to $20,000 in GDP per capita terms.

  • Japan was the fastest, making the leap in just 15 years. By 1987, it had crossed the $20,000 mark, clocking an impressive compounded annual growth rate (CAGR) of 15%.

  • South Korea, despite being one of the most remarkable economic transformation stories, took 23 years to achieve the same, reaching the milestone in 2006. This translates to a CAGR of 9.5%.

  • Asian countries, on average, required 21 years to move from $2,500 to $20,000 GDP per capita, with an average CAGR of 10.4%.

The Chinese Experience

China’s economic journey provides another interesting comparison. In 2010, China’s GDP per capita stood far lower than today. By 2023, it had risen to $12,614—more than 2.7 times higher—representing a CAGR of 11.8%. China’s emphasis on manufacturing, infrastructure, and exports has been a key driver of this rapid growth.

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Where Does India Stand Today?

India’s growth trajectory, although steady, has not matched the pace seen in East Asia. From 2010 to 2023, India’s GDP per capita grew at a CAGR of 7.8%, significantly lower than China’s 11.8%. If this 8% growth rate continues, India might reach the $20,000 mark by around 2050.

According to a report by DSP Asset Managers, India could potentially achieve the $20,000 GDP per capita milestone by the mid-2040s, provided it accelerates its economic reforms and sustains a higher growth trajectory. If India can accelerate its growth to match the Asian average CAGR of 10.4%, it could achieve the target by 2044, ahead of the centennial goal.

Key Considerations and Caveats

It is essential to note that these estimates are based on nominal dollar terms and do not factor in variables such as:

  • Inflation: Higher inflation could skew the real purchasing power of the per capita income.

  • Currency fluctuations: Exchange rate volatility can impact dollar-denominated GDP figures.

  • Population growth: Faster population growth may dilute per capita figures.

  • Structural reforms: The pace of economic reforms and industrial transformation will play a critical role.

As such, the trajectory towards a $20,000 GDP per capita is not only dependent on numerical growth but also on qualitative transformation—education, productivity, infrastructure, governance, and global competitiveness.

A Long but Promising Road Ahead

While the $20,000 target is ambitious, historical comparisons show that it is not unattainable. The experiences of Japan, South Korea, and China demonstrate that with focused policy implementation, infrastructure development, and productivity enhancements, rapid economic ascents are possible.

Conclusion

India’s path will likely be shaped by a combination of domestic reform, demographic dividend utilisation, global trade dynamics, and sustained political will. Whether it takes until 2044 or 2050, the journey towards higher income levels will remain one of the defining narratives of the coming decades.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

India and US Negotiate ‘Fair and Balanced’ Trade Deal, Tackling Tariffs

External Affairs Minister S. Jaishankar and US Secretary of State Marco Rubio held a telephonic conversation on Monday to discuss the effects of recently imposed US tariffs on Indian exports. The US State Department stated that the call focused on exploring avenues for advancing a “fair and balanced trade relationship.”

The discussion followed US President Donald Trump’s sweeping decision to impose a 10% baseline tariff on all imports entering the United States. Notably, India now faces a steep 26% tariff under this new regime: a move that has unsettled global markets and raised concerns among key US allies and trade partners.

Focus on Trade Agreement Over Retaliation

Despite the sharp increase in tariffs, India has refrained from retaliatory measures. According to an Indian official speaking over the weekend, New Delhi is prioritising negotiations with Washington to finalise a long-delayed Bilateral Trade Agreement, expected by autumn 2025.

Jaishankar confirmed the call via microblogging platform X: “Good to speak with @SecRubio today. Exchanged perspectives on the Indo-Pacific, the Indian Sub-continent, Europe, the Middle East/West Asia and the Caribbean. Agreed on the importance of the early conclusion of the Bilateral Trade Agreement. Look forward to remaining in touch.”

The US State Department echoed the sentiment, adding that both sides “reaffirmed their commitment to making progress toward a fair and balanced trade relationship” and discussed “U.S. reciprocal tariffs on India.”

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Geopolitical and Humanitarian Priorities

Beyond trade, the leaders exchanged views on a broad range of geopolitical issues. These included strategic developments in the Indo-Pacific, tensions in West Asia, evolving challenges across Europe, and humanitarian responses in regions such as the Caribbean and Indian subcontinent.

During a recent speech at NATO headquarters in Brussels, Secretary Rubio called upon emerging global powers like India and China to take greater responsibility in global humanitarian efforts. Referring to the devastation caused by recent earthquakes in Myanmar, he emphasised the importance of international solidarity, noting that “rising powers must shoulder more responsibility.”

Conclusion

The conversation between Jaishankar and Rubio signals a critical moment in India–US relations, highlighting a shared commitment to resolving trade tensions and cooperating on global challenges. As discussions over the Bilateral Trade Agreement continue, both nations aim to navigate economic uncertainty while strengthening their strategic partnership.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

 

Government Notifies RRB Merger Under “One State, One RRB” Policy

In a significant step towards banking sector reform, the Union government has issued a gazette notification announcing the merger of multiple Regional Rural Banks (RRBs), effective from 1 May 2025. Exercising powers under Section 23A(1) of the Regional Rural Banks Act, 1976, the government has formalised the creation of single RRB entities in several states by consolidating existing institutions.

Major Consolidations Across States

According to the notification, Andhra Pradesh will witness the merger of four RRBs: Chaitanya Godavari Grameena Bank, Andhra Pragathi Grameena Bank, Saptagiri Grameena Bank, and Andhra Pradesh Grameena Vikas Bank. These will be integrated into a new entity named Andhra Pradesh Grameena Bank, with its head office situated in Amravati. The newly formed bank will be sponsored by Union Bank of India.

In Bihar, Dakshin Bihar Gramin Bank and Uttar Bihar Gramin Bank will come together to form Bihar Gramin Bank. This merged institution will be headquartered in Patna and will operate under the sponsorship of Punjab National Bank.

The amalgamation is expected to create more robust financial institutions with a wider reach, improved capital base, and better service quality in rural areas.

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A Step Towards Stronger Rural Banking

As per reports, this restructuring aligns with the Union finance ministry’s long-term objective to streamline the RRB framework, avoiding unnecessary competition among public sector-sponsored rural banks. By consolidating RRBs on a state-wise basis, the policy envisions improved governance, reduced operational costs, and enhanced service delivery in rural banking.

Conclusion

The merger of multiple Regional Rural Banks into unified entities marks a pivotal reform in India’s rural banking structure. By reducing fragmentation and fostering scale, the move is expected to bring long-term benefits to both the banking sector and rural customers.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

 

India iPhone Exports Soar to ₹1.5 Trillion in FY25, Surpassing PLI Target by 2x

In a significant development for India’s electronics manufacturing sector, Apple Inc. has ramped up its iPhone exports from the country amidst global trade uncertainties. The move comes at a time when geopolitical shifts and rising tariffs are forcing tech giants to reconsider their supply chain strategies.

iPhone Exports Soar Amid Global Trade Tensions

Apple’s iPhone exports from India have shown a sharp increase, rising from ₹11,000 crore in March FY24 to ₹20,000 crore in March FY25. For the full financial year, total exports surged to ₹1.5 lakh crore from ₹85,000 crore the previous year. A substantial share of these exports was directed towards the United States just ahead of new import tariffs announced by President Donald Trump on April 2.

Both India and China, the only two countries where iPhones are manufactured, have been hit with US tariffs of 26% and 54% respectively. While these measures have disrupted global trade sentiment, Apple is reportedly taking a cautious approach and is unlikely to make immediate changes to its production or supply chain plans over the next several weeks.

India Becomes Key Manufacturing Hub for Apple

In anticipation of global trade disruptions, Apple had already begun expanding its manufacturing footprint in India during 2024. Backed by the Indian government’s production-linked incentive (PLI) scheme, the company has steadily shifted some of its operations away from China.

As per news reports, Apple is currently in discussions with major Indian industrial groups to locally source iPhone components such as mechanical parts. Several Indian firms have also entered joint ventures and partnerships to support Apple’s growing production requirements, underlining the country’s increasing importance in the brand’s global strategy.

Conclusion

Apple’s soaring iPhone exports from India reflect not only the changing dynamics of international trade but also the country’s rising role in global electronics manufacturing. As the company navigates the uncertainties of global tariffs and supply chain disruptions, India stands poised to play a more central role in its production ecosystem.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Coffee Day Enterprises Faces ₹425.38 Crore Loan Default Amid Financial Strain

Coffee Day Enterprises Limited has submitted its debt-related disclosure for the final quarter of the financial year 2024–25. The company reported delays in debt repayments and interest servicing due to a liquidity crunch.

Defaults on Bank Loans and Cash Credit

The company had total outstanding loans and revolving credit facilities (like cash credit) of ₹180.61 crore from banks and financial institutions as of the reporting date. Out of this, ₹174.83 crore was in default. Additionally, the interest default on these loans stood at ₹5.78 crore.

Defaults on Unlisted Debt Securities

For unlisted debt instruments such as Non-Convertible Debentures (NCDs) and Non-Convertible Redeemable Preference Shares (NCRPS), the outstanding amount was ₹244.77 crore. Out of this, ₹200 crore was the defaulted principal, and ₹44.77 crore represented interest not paid.

Total Financial Indebtedness and Legal Implications

Combining both bank loans and unlisted securities, the total outstanding debt reached ₹425.38 crore. Due to the non-payment of dues, lenders have issued loan recall notices and initiated legal proceedings. Moreover, since a one-time settlement is still pending, the company has not recognised any interest payments from April 2021 onwards.

About Coffee Day Enterprises Limited

Coffee Day Enterprises Limited is a diversified Indian company headquartered in Bangalore, best known as the parent of Cafe Coffee Day, one of India’s largest coffee chains. The company operates across various sectors, including retail, logistics, financial services, and technology parks. With a strong presence in the coffee retail space, it has played a key role in popularising cafe culture in India.

Share Performance 

As of April 08, 2025, at 10:25 AM, Coffee Day Enterprises Limited Share Price is trading at ₹27.85 per share, reflecting a loss of 2.01% from the previous day’s closing price. Over the past month, the stock has registered a loss of 2.69%. The stock’s 52-week high stands at ₹74.65 per share, while its low is ₹21.28 per share.

Conclusion

The company has acknowledged serious financial strain, with defaults on substantial amounts of both principal and interest. Legal proceedings have been initiated by lenders, and loan recall notices have been served. Until the pending one-time settlement is resolved, the company has opted not to account for interest payments from April 2021 onward.

 

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.