38.6c New Delhi, India, Wednesday, April 17, 2024
Business

Coffee Day Enterprises Shares Plunge 20% As Founder VG Siddhartha Goes Missing

By LawStreet News Network      30 July, 2019 11:07 AM      0 Comments
Coffee Day Enterprises Shares Plunge 20% As Founder VG Siddhartha Goes Missing

Shares of Coffee Day Enterprises hit a lower circuit limit of 20 per cent in Tuesday’s (July 30, 2019) trade on reports founder V.G. Siddhartha has been missing since Monday night.

According to reports, Siddhartha got off from his car near a bridge across the Nethravathi River near Mangalore, about 375km from Bengaluru, but did not return even after an hour. A panicked driver went down looking for him, but could not find him anywhere. He then alerted the family members who in turn informed the police.

In an alleged letter, circulating in social media platforms, Siddhartha told the company board on July 27, 2019, that his intention was never to cheat or mislead anybody. "I have failed as an entrepreneur. This is my sincere submission. I hope someday you will understand, forgive and pardon me."

"My team, auditors and senior management are totally unaware of all my transactions. The law should hold me, and only me accountable," he allegedly said in the letter.

There are reports doing the rounds that Siddhartha jumped off a bridge in Ullal. TOI reported that Mangaluru city police has started a frantic search for a person who reportedly jumped off the kilometre-long bridge over the Nethravathi River at around 9 pm.

The company on Tuesday morning issued an update, acknowledging that Siddhartha is missing. "We are taking the help of concerned authorities. Company is professionally managed and led by competent leadership team, which will ensure continuity of business," it informed BSE.

Following the development, the scrip fell 20 per cent to hit a low of Rs 154.05 on BSE. The stock has lost 44 per cent of its market value year-to-date, ET reported.

"I could not take any more pressure from one of the private equity partners forcing me to buyback shares, a transaction I partially completed six month ago by borrowing a large sum of money from a friend. Tremendous pressure from other lenders lead to me succumbing to the situation," the alleged letter read.

"There was a lot of harassment from the previous DG income tax in the form of attaching our shares on two seperate occassions to block out Mindtree deal. and then taking position of our Coffee Day shares, although the revised returns have been filed by us."

The coffee entrepreneur, who is the son-in-law of former External Affairs and Karnataka Chief Minister S.M. Krishna, had recently been in talks with Coca Cola offering the multinational giant a stake in the coffee retail business. His coffee retail business was expecting to close the year ending March 2020 with sales of about Rs 2,250 crore, ET reported.

The 58-year-old first-generation coffee entrepreneur hailed from a coffee growing family in Chikmagalur in Karnataka. A post-graduate in Economics, the family is the largest individual coffee planter, owning about 15,000 acres of coffee estates.



Share this article:

User Avatar
About:


Leave a feedback about this
TRENDING NEWS

baba-ramdev-acharya-balkrishna-offer-to-make-public-apology-in-sc-for-misleading-advertisements
Trending Judiciary
Baba Ramdev, Acharya Balkrishna offer to make public apology in SC for misleading advertisements

Baba Ramdev and Acharya Balkrishna offer public apology in SC for misleading ads, court deliberates acceptance.

16 April, 2024 01:57 PM
hymen-tear-or-genital-injuries-are-not-a-sine-qua-non-to-prove-penetrative-sexual-assault-in-pocso-case-rules-guwahati-hc
Trending Judiciary
Non-tear of the hymen is of no consequence in cases of penetrative sexual assault: Guwahati HC in POCSO case [Read Judgment]

Hymen tear or genital injuries are not a sine qua non to prove penetrative sexual assault, the Guwahati High Court has held in a case under the POCSO Act, 2012.

16 April, 2024 05:06 PM

TOP STORIES

sc-sets-aside-judgment-upholding-arbitral-award-against-dmrc
Trending Business
SC sets aside judgment upholding arbitral award against DMRC [Read Judgment]

Supreme Court overturns arbitral award favoring Reliance Infrastructure subsidiary against DMRC, citing grave miscarriage of justice.

11 April, 2024 11:43 AM
delhi-hc-rejects-third-plea-for-arvind-kejriwals-removal-as-delhi-cm-blasts-petitioner-for-abuse-of-judicial-process
Trending Political NEWS
Delhi HC rejects third plea for Arvind Kejriwal's removal as Delhi CM, blasts petitioner for abuse of judicial process [Read Judgment]

Delhi High Court dismisses the third PIL plea before it seeking Aam Aadmi Party leader Arvind Kejriwal’s removal as Chief Minister of Delhi, imposes Rs. 50,000 cost on petitioner.

11 April, 2024 03:29 PM
use-of-social-media-to-interfere-with-administration-of-justice-needs-serious-consideration-sc
Trending Judiciary
Use of social media to interfere with administration of justice needs serious consideration: SC [Read Judgment]

Supreme Court warns against social media misuse in legal matters, cautions against prejudicial posts interfering with justice.

11 April, 2024 05:44 PM
two-day-conference-on-april-on-technology-and-dialogue-between-sc-and-singapore
Trending Legal Insiders
Two-day conference on April 13-14 on Technology and Dialogue between SC and Singapore

Explore AI's role in law at the India-Singapore Supreme Court conference on technology, enhancing judicial processes and access to justice, April 13-14, 2024.

12 April, 2024 06:16 PM

ADVERTISEMENT


Join Group

Signup for Our Newsletter

Get Exclusive access to members only content by email