While owner VG Siddhartha is still missing, Cafe Coffee Day would not close and would continue to function, company secretary to NIFTI and BSE wrote in a effort to save shares from dropping.
Mangaluru: The owner of Cafe Coffee Day, VG Siddhartha, has gone missing since Monday (July 29) night and search is on in the Netravati River and surrounding places in Mangaluru, Karnataka, where he was spotted last. Following this news, many Cafe Coffee Day outlets remained closed and its share price dropped considerably.
In the wake of these developments, the company has written to two major share markets stating that there is a professional team working, whatever the situation is, and that Cafe Coffee Day would not stop business.
Cafe Coffee Day's company secretary Sadananda Poojary wrote to The National Exchange of India (NIFTI) and BSE Limited. He informed the companies about the owner of the company missing, while assuring that the company would function as usual and the incident would not hamper business.
He explained the stock exchanges that the company would function even in the absence of owner VG Siddhartha. The company is capable of managing its daily routine and work, he added.
This is an effort to maintain business as the shares of the company fell considerably this morning (July 30). According to reports, Cafe Coffee Day's business in BSE Sensex opened to Rs 154.05 with a drop of 19.90%, whereas the drop in NSE is 20%.
The letter reads: This is to inform you that Mr VG Siddhartha, Chairman and Managing Director of Coffee Day Enterprises Limited is not reachable since yesterday evening. We are taking the help of concerned authorities. Company is professionally managed and led by competent leadership, which will ensure continuity of business. We will keep you posted as and when we receive further updates.
Meanwhile, there are reports that various business enterprises owned by Siddhartha including Cafe Coffee Day are not functioning today (July 30).
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Last Updated Jul 30, 2019, 1:37 PM IST