Cafe Coffee Day stocks plunge 36% in 2 days after its founder VG Siddharthas body found
A day after the body of Coffee Day (CCD) founder VG Siddhartha was found on the banks of Netravati River near Hoige Bazaar in Mangaluru, the companys share tumbled another 12 percent today.
A day after the body of Coffee Day (CCD) founder VG Siddhartha was found on the banks of Netravati River near Hoige Bazaar in Mangaluru, the company's share tumbled another 12 percent today. Coffee Day Enterprises Shares fell another 20 percent on Wednesday to hit a fresh 52-week low of Rs 123.25 on the BSE. On Wednesday, the company's share locked at the 20 percent lower circuit on NSE. CCD founder's body was reportedly found near Hoige Bazaar, about one km away from the bridge he allegedly jumped, at about 6.30 am on Wednesday, after an intensive search operation for 36 hours.
Siddhartha is the first one in India to change the way we drink coffee. He CCD founded in 1996. According to information available from the financial statement, the Coffee Day Enterprises had a total debt of about Rs 6,550 crore as of March 2019. However, the company's debt level had drastically reduced after Siddhartha's stake sale in Mindtree, according to reports.
Siddhartha in a letter to the Board of Directors said about harassment by Income Tax Department. : "There was a lot of harassment from the previous DG income tax in the form of attaching our shares on two separate occasions to block our Mindtree deal and then taken possession of our Coffee Day shares, although the revised returns have been filed by us. This was very unfair and has led to a serious liquidity crunch," the letter stated. The authorities, however, are trying to ascertain the veracity of the letter.
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