Today, Cafe Coffee Day’s stock fell 20 percent. Following the disappearance of the company’s founder, VG Siddharth, the company’s stock became a lower circuit.
New Delhi: Shares of his company Coffee Day Enterprises plunged 20 per cent following the news of the disappearance of Cafe Coffee Day founder VG Siddharth. This stock has a lower circuit of 20 per cent, so today it will not fall further.
Siddharth had left Mangalore in his Innova car the previous night. The car stopped near Ullal Bridge and after that they went missing. He could not be contacted after that. One of his letters is running on social media, in which on 27 he wrote to the company board that he does not want to cheat anyone. He wrote that as a businessman I failed.
After this information came to light, the share of Coffee Day Enterprises, the company that runs Cafe Coffee Day, fell 20 per cent to Rs 154.05. According to a report, in June, he had stopped the deal to sell the real estate venture Tanglin Development to Black Stone Group for Rs 2800 crore. Siddharth then raised Rs 3200 crore by selling his 20.32 per cent stake in Mind Tree.
This amount helped him to take out a loan of Rs 2900 crore. Coffee Day sales were Rs 76.9 crore in the previous quarter. This was an increase of 43.64 per cent over March 2018.
The company had a loss of Rs 22.28 crore in the March 2019 quarter. The company’s losses were up 34.91 per cent over the same quarter last year. The company had a loss of Rs 16.52 crore in the March 2019 quarter.
The company said, ‘V.G., chairman and managing director of Coffee Day Enterprises. Siddharth is unable to be contacted tomorrow evening. We are taking the help of concerned authorities. The management of the company is in the hands of professional people. It is being led by competitors who will ensure the smooth running of the business.