Cafe Coffee Day operator shares locked at 20% lower circuit after founder VG Siddhartha goes missing

Shares of Coffee Day Enterprises shed 20 percent in the early trade on July 30 after Cafe Coffee Day founder VG Siddhartha was reported missing since the night of July 29.

The police said it has begun search operations.

There were pending sell orders of 2,124,708 shares, with no buyers available.

The share has touched a 52-week low of Rs 154.05.

Siddhartha got off his car at a bridge near the Nethravati River, near Mangaluru. The driver alerted family members after he didn't return for an hour.

The driver said Siddhartha was on a phone call when he got off the car. Helicopters and Coast Guard have been called for search operations, News18 has reported.

Also Read - Missing CCD founder recently sold his stake in Mindtree for Rs 3,000 crore

The Dakshina Kannada police have launched a search near the Nethravati River.

"I sincerely request each of you to be strong and to continue running these businesses with a new management," Siddhartha said in a letter dated July 27 to board and employees.

Also Read - VG Siddhartha missing: 'I have failed as an entrepreneur,' says Cafe Coffee Day owner in letter to staff

Siddartha said he was under 'tremendous pressure' from private equity partners to buyback their shares, a transaction he had partially undertaken after borrowing money from a friend.

The Cafe Coffee Day founder also spoke of a liquidity crunch due to harassment from a previous Director General of Income Tax with regard to the Mindtree deal. Siddhartha had recently sold 20.3 percent stake in Mindtree to L&T.

He took complete responsibility for the situation, saying that none of his team members, auditors and senior management were aware of these transactions.

Coffee Day Enterprises provides integrated logistics solution through subsidiary Sical Logistics whlie services like broking, wealth managment, portfolio management etc provide by its subsidiary Way2Wealth Securities Private Limited

Sical Logistics shares touched a 52-week low of Rs 72.80, down Rs 18.15, or 19.96 percent.