Coffee Day Enterprises Ltd shares further plummet 20 per cent; S V Ranganath appointed interim chair

Mumbai: Shares of Coffee Day Enterprises Ltd further plummeted 20% 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. The scrip tumbled 20% to Rs 123.25 -- its 52-week low level as well as its lowest trading permissible limit for the day -- on the BSE. At the NSE, it dropped 20% to hit its one year low as also its lower limit of Rs 122.75.

In two days, the company's market valuation has tanked by Rs 1,463.32 crore to Rs 2,603.68 crore on the BSE. Shares of Coffee Day Enterprises Ltd dropped 20% on Tuesday also after reports surfaced that Siddhartha has gone missing. Meanwhile, Coffee Day Enterprises named independent director S V Ranganath as the interim chairman of the company to replace its founder VG Siddhartha, who has been confirmed dead days after he went missing. The company board, wherein Siddhartha's wife Malavika Hegde is also a director, met on Wednesday to put in place a working structure of the company.

The board appointed "S V Ranganath as the interim chairman of the board" and "Nitin Bagmane as an interim chief operating officer (COO) of the company," Coffee Day Enterprises, which runs India's biggest coffee chain CCD, said in a regulatory filing. It also constituted an executive committee comprising Ranganath, COO Nitin Bagmane and CFO R Ram Mohan "to exercise the powers previously vested with the Chief Executive Officer of the company and the Administrative Committee constituted by the Board in 2015," it said. "The board will, in due course, prepare a detailed charter of authorities vested in the Executive Committee and approve the same," the filing said. The Executive Committee will explore opportunities to deleverage the Coffee Day Group, it said.

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