Cafe Coffee Day shares lose another ₹700 crore value after founder Siddhartha's dead body surfaces
- The shares of Coffee Day Enterprise slipped by a massive 19.9% in early trade.
- It was trading at a new low of ₹123.25 after the news about the founder's death surfaced this morning.
- VG Siddhartha, the founder, and CEO of Cafe Coffee day was missing since Monday evening.
VG Siddhartha, the founder, and CEO of Cafe Coffee day was missing since Monday evening. The police conducted a massive search operation until this morning. They recovered a body which is believed to be of the
The company had an outstanding debt of ₹6547 crore as of March 2019. Siddhartha was under heavy pressure as he held three-fourths of his company’s shares.
"Today I gave up as I could not take any more pressure from one of the private equity partners forcing me to buy back shares,” Siddhartha told his employees, in a letter which has been doing the rounds since yesterday. Siddhartha had blamed private equity players, and the tax authorities in the letter.
Country's stock regulatory board, Securities and Exchange Board of India (SEBI) has already started looking into private equity players, or any lapses that may have occurred. It is also monitoring the trading patterns of the company.
Yesterday, the value of all outstanding shares fell by nearly ₹800 crore after the company stated on BSE that their founder is not reachable.
India’s coffee king V G Siddhartha’s journey from silver spoon to a gilded cage
Over 75% of shares owned by VG Siddhartha and other promoters in Coffee Day Enterprises were pledged with creditors-- and they are worth much lesser today