Cafe Coffee Day shares plunge 20% on BSE after owner VG Siddhartha goes missing
The stock closed at a 52-week low of Rs 154.05 per share, a decline of nearly 20% from Monday’s closing price.
Shares of coffee chain Cafe Coffee Day tanked 20% in Tuesday’s trade on the BSE following reports that its owner VG Siddhartha went missing from Mangaluru on Monday. The stock closed at a 52-week low of Rs 154.05 per share, a decline of nearly 20% from Monday’s closing price. The stock also lost 20% on the National Stock Exchange and closed at Rs 153.40 per share.
Coffee Day Enterprises, which owns CCD, informed the two stock exchanges that Siddhartha, its chairman and managing director, was not reachable since the previous evening, The Economic Times reported. “We are taking the help of concerned authorities,” the company said. “Company is professionally managed and led by a competent leadership team, which will ensure continuity of business.”
Siddhartha is the son-in-law of former Karnataka Chief Minister SM Krishna. Siddhartha’s driver told the police that they had left Bengaluru to go to Mangaluru on Monday night, according to Mangaluru Commissioner of Police Sandeep Patil.
An unidentified police official said Siddhartha had informed his family that he was going to Sakleshpur in Hassan district while leaving Bengaluru. Once he left home, he reportedly told his driver to head towards Mangaluru.
Teams have been searching the Netravati River for Siddhartha. More than 200 policemen and divers on 25 boats are looking for him. Dakshina Kannada district Deputy Commissioner of Police Senthil Sasikant Senthil said sniffer dogs were also assisting in the search operation.
Chief Minister BS Yediyurappa and Congress leaders DK Shivakumar and BL Shankar visited SM Krishna at his residence in Bengaluru following reports of Siddhartha going missing. Krishna resigned as a member of the Congress in January 2017, and joined the BJP in March that year.
In September 2017, Income Tax Department had conducted raids at the offices and homes of Siddhartha. Officials were looking for evidence to prove allegations of tax evasion against him. Documents showing Rs 650 crore of concealed income were reportedly seized during the search operations.
