CCD Enterprise stocks nosedive after death of founder

Bengaluru, July 31: Coffee Day Enterprises' stock has hit its 20 per cent lower circuit for the second day in a row on news of founder V G Siddhartha's death. At 09.16 am Coffee Day Enterprises was quoting at Rs 123.25, down Rs 30.80, or 19.99 per cent. It has touched a 52-week low of Rs 123.25.

V G 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 S M Krishna, was found dead from Ullal beach near Mangaluru.

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