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Cafe Coffee Day shares slump 20% to hit all-time low after founder VG Siddhartha goes missing

Shares of Coffee Day Enterprises plunged 20% in the early trading session on Tuesday after Cafe Coffee Day founder VG Siddhartha was reported missing.

twitter-logo BusinessToday.In        Last Updated: July 30, 2019  | 18:47 IST
Cafe Coffee Day shares slump 20% to hit all-time low after founder VG Siddhartha goes missing
There are only sellers in the stock with pending sell orders worth 23,39,298 shares on BSE and 85,99,029 shares on NSE and no buyers standing.

Shares of Coffee Day Enterprises plunged 20% in the early trading session on Tuesday after Cafe Coffee Day founder VG Siddhartha was reported missing.

VG Siddhartha, who's the founder of India's largest coffee chain Cafe Coffee Day (CCD) and who also happens to be the son-in-law of senior BJP leader SM Krishna, has reportedly gone missing from the Netravati dam site in Karnataka since Monday evening.

Reacting to media reports, Coffee Day Enterprises' stock price has formed a gap down chart pattern today and started the day at a loss of 19.99% or 38.50 points at Rs 154.05 on BSE, also the stock's all-time and new 52 week low.

There are only sellers in the stock with pending sell orders worth 23,39,298 shares on BSE and 85,99,029 shares on NSE and no buyers standing. Volume-wise, 108,414 shares (including BSE and NSE) trade on the bourses.

The promoter group of CCD owns 53.93% stake out of which 75.70% has been pledged. Meanwhile, the founder, VG Siddhartha's stake in Cafe Coffee Day stands at 32.75%, of which 71.4% or 4.93 crore shares are pledged. Debt-wise, the borrowings of CCD have spiked by 63.54%, from Rs 4,003.47 crore in March 18 to Rs 6547.38 crore in March 2019, as per CMIE data.

Moreover, Cafe Coffee Day's market capital stood at Rs 4067.65 cr by the closing of the last trading day. As of 12: 30 pm, CCD's current market capitalization has reduced to Rs 3,254.33 crore, after losing Rs 813.32 cr. Coffee day's Market capitalisation was at its peak on September 19, 2018, at Rs 6,678 crore.

The Coffee Day Enterprises' share is trading below 30, 50, 150 and 200 day moving average. The stock of Coffee Day has fallen over 41% in the last 6 months and over 22% in a week's period on both the bourses.

Following the news, the company filed a regulatory statement informing, " Mr V G Siddhartha, Chairman and Managing Director of Coffee Day Enterprises Limited has not been reachable since yesterday evening. We are taking the help of concerned authorities. Company is professionally managed and led by a competent leadership team, which will ensure continuity of business."

Commenting on the sudden fall of Coffee Day stock, Mustafa Nadeem, CEO, Epic Research said panic can be noticed with the stock price hitting the lower circuit, and the ripple effects are visible to its lenders. The company was listed on the exchange in November 2015.

Edited by Rupa Burman Roy

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