Shares in Coffee Day Enterprises – the operator of the Cafe Coffee Day chain of restaurants – plunged nearly 10 per cent on Friday, marking the eighth day of losses. The company’s shares have registered sharp losses this week, after the death of its founder VG Siddhartha, whose body was found on Wednesday morning, 36 hours after he went missing from a bridge near Mangaluru in Karnataka. At the day’s low, the Coffee Day Enterprises stock has declined 35.15 per cent since Wednesday.
On Wednesday, Coffee Day Enterprises announced the appointment of independent director SV Ranganath as the interim chairman of its board. The board also decided to appoint Nitin Bagmane, chairman of Coffee Day Enterprises unit Tanglin Developments, as interim chief operating officer.
In a regulatory filing after its board meeting on Wednesday, the company said: “The Board remains deeply committed to safeguarding the interests of all stakeholders, including investors, lenders, employees, and customers.”
“The Board noted with profound regrets the tragic demise of VG Siddhartha and his matchless energy, vision and business acumen which helped to single-handedly build the Company,” it added.
At 12:37 pm, Cafe Coffee Day shares were locked in the lowest circuit at Rs 99.90 apiece on the BSE, sharply underperforming the benchmark Sensex index which was off day’s low to trade down 0.40 per cent.