Coffee Day Enterprises Ltd (CDEL) on Monday said Malavika Hegde, the wife of its late founder VG Siddhartha, has been appointed as the company's Chief Executive Officer. CDEL runs a chain of Cafe Coffee Day restaurants in India.
Ashok Kumar will also investigate the circumstances under which Coffee Day Enterprises late founder V G Siddhartha had written the purported letter dated July 27, alleging harassment by the income tax department.
Cafe Coffee Day owner, late V G Siddhartha's father, Gangaiah Hegde passed away on Sunday in a Mysuru hospital, a month after Siddhartha was found dead in the Netravati River on July 31.
The debt position of Coffee Day Group post repayment of debt out of proceeds from the sale of Global Village is expected to be around Rs 1,000 crore in the next 45 days, it added. As per the filing, the total debt of Coffee Day Enterprises as on July 31, 2019, was Rs 3,472 crore.
The announcement comes weeks after Coffee Day Enterprises founder V G Siddhartha allegedly committed suicide. In a letter purportedly written by him, Siddhartha mentioned severe financial stress being faced by his group firms, among other issues.
The purported letter, which is believed to be the final note by the late promoter and widely circulated on social media, contained statements alleging harassment on VG Siddhartha by the Income Tax department. In a reply to the clarification sought by the bourses on the issue, Coffee Day Enterprises said "the company is aware of the news report" and added that it is "co-operating with regulatory authorities in relation to the letter and related matter."
The business tycoon, VG Siddhartha, who happens to be the founder-owner of the chain of Cafe Coffee Day shocked the nation with the news of his sudden death. Various celebrities filled Twitter with condolence messages.
Sixty-year-old Siddhartha went missing on Monday evening and his body was found on Wednesday. Siddhartha, who was the Chairman and Managing Director of Coffee Day Enterprises, completed BCom from St Aloysius College.
Siddhartha was on Wednesday afternoon taken to Chattanahalli, his village, in Karnataka's Chikkamagaluru district, a family source said. Siddhartha went missing on Monday night. Two fishermen later found his body floating in the backwaters of the Netravathi river on Wednesday morning.
SV Ranganath has been named the interim chairman of Cafe Coffee Day after the death of VG Siddhartha. Nitin Bagmane has been made the interm chief operating officer.
Shares of Coffee Day Enterprises Ltd further plummeted 20 per cent to hit its lowest trading permissible limit for the day on Wednesday after its Chairman and Managing Director V G Siddhartha's body was found.
Siddhartha, the son-in-law of BJP leader SM Krishna, was under the scanner of the income tax department and Enforcement Directorate for alleged irregularities in his association with information technology company Mindtree Ltd.
All our 1,750 retail outlets in about 240 cities will remain shut for the day as a mark of respect to our founder-chairman Siddhartha who is no more. The decision came just hours after Siddhartha's body was fished out of the Netravathi river on the west coast earlier in the day.
VG Siddhartha, the son-in-law of Karnataka's former chief minister S M Krishna, committed suicide by jumping into Netravathi river on July 29 and his body was recovered on Wednesday.
CCD Founder VG Siddhartha's body has been recovered from Netravati river near Mangaluru after a 35-hour extensive search. VG Siddhartha, son-in-law of SM Krishna, went missing on Monday.
Siddhartha, 60, went missing on Monday evening and was seen last on the road bridge between Ullal and Mangaluru over the river around 7 pm as his car driver Basavaraj Patil told the police.
Coffee Day Enterprises, the holding firm of Coffee Day, had a total debt of around Rs 6,550 crore as on March 2019. The group's coffee business, which includes some exports, reported revenues of Rs 1,777 crore in FY18 and Rs 1,814 crore in FY19.
Cafe Coffee Enterprise on the BSE are trading at Rs 154.05 apiece, after it hit lower circuit post a decline of 20 per cent during the early trade on Tuesday. Analysts have warned that further panic selling can cause the share value to fall down to double digit from Rs 154 currently.
V. G. Siddhartha is an Indian businessman from Karnataka's Chikkamagaluru district. He is best known as the founder-owner of the chain of Cafe Coffee Day outlets. He comes from a family that has been in the business of coffee plantation for around 140 years. He is credited with creating India's largest coffee empire. He is also married to the daughter of former Karnataka CM SM Krishna.
While search for CCD founder VG Siddhartha is underway, the company in a letter has informed the National Stock Exchange (NSE) that the business is running as usual.
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