Shares in Indian tycoon’s coffee company plummet

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Coffee Day scrambles to name chair and CEO after body of VG Siddhartha found in a river

31 July 2019 - 15:22Coffee Day Enterprises's VG Siddhartha who was found deceased in a river. Picture: REUTERS/SHAILESH ANDRADE

Shares in Coffee Day hit their lower limit for the trading day and plunged 20% to 122.75 rupees on Wednesday, fresh off the back of another 20% slide on Tuesday. While the authenticity of the letter has still not been verified, the board has taken serious note of its contents and will thoroughly investigate the matter, the company said.“I think the company, its brand, its franchise has value, if it gets sold to an external buyer,” said Deepak Jasani, a senior vice-president at HDFC Securities. “A lot will depend on whether and when the board or top management takes a call on selling the business or not.

India’s opposition parties seized on the letter, accusing Prime Minister Narendra Modi's administration of spooking businesses with heavy-handed tactics. Siddhartha, who hailed from a coffee-growing family, opened his first coffee shop in 1996, more than a decade before global coffee shop giant Starbucks began its foray into the country. His Cafe Coffee Day chain boasts more than 1,600 outlets servicing a burgeoning middle class.

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