The transaction will substantially bring down the debt level of the group , which was earlier disclosed to be at Rs 4, 970 crore on August 17.
The deal might help the company service part of its liabilities.
The Coffee Day Group company, which runs port terminals and container freight stations, was working on "strategic alternatives" to deleverage the company.
The Coffee Day stock has been hitting the upper circuit for the past few days
Strategic options include divestment of stake in Coffee Day Global and other group company, according to a regulatory filing by the company.
Trends on SGX Nifty indicate a negative opening for the broader index in India, with a 0.32 percent loss or 35 points. Nifty futures were trading around 11,013-level on the Singaporean Exchange.
The RoC also advised the company to be careful in future regarding compliance with the provisions of the Companies Act, 2013.
Coffee Day Enterprises closed at Rs 82.75, down Rs 4.35, or 4.99 percent.
The transaction will likely value the Cafe Coffee Day chain, excluding its vending machine business, at Rs 3,500-4,000 crore
The stock rallied nearly 22 percent in four consecutive sessions to Rs 76.40 after losing 68.5 percent in the wake of its founder's death
The stock rallied 16.1 percent in three straight sessions after falling 68.5 percent in the previous 16 sessions in a row due to the shock death of founder VG Siddhartha on July 29.
Coffee Day Enterprises (CDE) owns Café Coffee Day, India's largest cafe chain that operates 1,750 outlets across the country.
The company debt as on July 31, 2019 was Rs 4,970 crore. Going by the assets and its valuations listed in the purported letter written by VG Siddhartha before his death on July 27, the assets are worth Rs 18,000 crore.
The market capitalisation fell from around Rs 7,000 crore at peak levels, to Rs 1,399 crore now.
As a result, the stock lost 62 percent of its value since July 29 (Rs 192 level). It was down 5 percent at Rs 73.35 with pending sell orders today.
The Coffee Day Enterprises board today appointed Ernst & Young (EY) to inspect its books and also look into the circumstances outlined by its deceased founder VG Siddhartha in his purported suicide note.
The purported letter, which is believed to be the final note by the late promoter and widely circulated on social media, contained statements alleging harassment on VG Siddhartha by the Income Tax department.
Total promoter and promoter shareholding stood at 53.93 percent as of June 2019, of which 75.70 percent shares are pledged against debt.
If businesses don’t find the regulatory environment conducive, no amount of cutting interest rates will kick start private investment and an economic recovery.
Coffee Day’s investors find themselves staring at a bleak period as the late founder’s letter raises more questions than it gives answers
VG Siddhartha’s signature in the purported letter does not match those in annual reports.
The current market capitalisation stands at Rs 3,254.33 crore, declining sharply from Rs 7,690.6 crore hit in January 2018.
There were pending sell orders of 2,124,708 shares, with no buyers available.