Coffee Day, Sical Logistics slump on report promoter goes missing | Mint
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Business News/ Markets / Stock Markets/  Coffee Day, Sical Logistics slump on report promoter goes missing
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Coffee Day, Sical Logistics slump on report promoter goes missing

Coffee Day Enterprises slumped 20% to hit a low of ₹154.05 on BSE
  • Year to date Coffee Day has fallen 45% while Sical declined 51%
  • CCD promoter V.G.Siddhartha have reported missing and is suspected to have jumped off a bridge into Nethravati river. (Photo: Hindustan Times)Premium
    CCD promoter V.G.Siddhartha have reported missing and is suspected to have jumped off a bridge into Nethravati river. (Photo: Hindustan Times)

    Mumbai: Shares of Coffee Day Enterprises Ltd and Sical Logistic Ltd on Tuesday hit 20% lower circuit after Mint reported that promoter V.G.Siddhartha have reported missing and is suspected to have jumped off a bridge into Nethravati river.

    Coffee Day Enterprises slumped 20% to hit a low of 154.05 on BSE while Sical Logistics Ltd fell 20%, its steepest fall since August 1994 to 72.80 a share. Year to date Coffee Day has fallen 45% while Sical declined 51%.

    Siddhartha is the son-in-law of former Karnataka chief minister S.M. Krishna.

    "Well, the situation is where we can see panic. May be sudden suction where liquidity is completely out and that's what we are seeing with stock price hitting the lower circuit. This is complete panic and now the ripple effects are seen to its lenders as well. Stock in the short term to medium term may see this behavior till things become more clear and any statement from the existing management of the company is there. Traders should definitely exit the stock if they find any opportunity as this is now going to be a long tedious process and by that time investors may feel some pain", said Mustafa Nadeem, CEO, Epic Research

    "We don't believe it would turn out to be so and it is very initial hours to foresee some things like that. Investors who would exit is not a problem. All investors exiting at once would be a problem for the business. So it's going to depend on the new management or anyone from existing how they handle and take things forward", Nadeem added.

    According to June quarter 2019 shareholding pattern, VG Siddhartha holds 32.75% stake in Coffee Day Enterprises, out of which he has pledged nearly 71.40%. In Sical Logistics Siddhartha holds 0.68% stake as of June quarter.

    As of March 2019, Coffee Day has net debt of 4,068.08 crore while Sical Logistic has net debt of 1,052.80 crore, according to Bloomberg.

    Siddhartha was seeking a valuation of as much as $1.45 billion from Coca-Cola Co. for a stake sale in the coffee chain he set up, The Economic Times reported last month.

    In March, Siddhartha garnered about 3,200 crore by selling the 20.32% stake held by him and two CCD affiliate firms (Coffee Day Enterprises Ltd and Coffee Day Trading Ltd) in software services company Mindtree Ltd to Larsen and Toubro Ltd (L&T).

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    Published: 30 Jul 2019, 09:59 AM IST
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