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Last Updated : Aug 14, 2019 03:26 PM IST | Source: Moneycontrol.com

Coffee Day shares tumble 65% since VG Siddhartha's death; company to sell Bengaluru Tech Park to Blackstone

The market capitalisation fell from around Rs 7,000 crore at peak levels, to Rs 1,399 crore now.

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Shares of Coffee Day Enterprises have stayed locked at the lower circuit erasing nearly 65.4 percent in 11 consecutive sessions, following the sudden death of founder VG Siddhartha on July 29.

The market capitalisation fell from around Rs 7,000 crore from the peak levels to Rs 1,399 crore.

The stock continued to stay locked 4.95 percent lower at Rs 66.25 on the BSE even after the company August 14 announced the sale of the Global Village Tech Park in its subsidiary Tanglin Developments to Blackstone. The transaction is valued at Rs 2,600 - 3,000 crore, Coffee Day said in a release t to the exchange.

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VG Siddhartha's death had raised many questions over the debt position of the group. Media reports suggest he and his companies owe around Rs 11,000 crore.

Sale of the Tech Park based in Bengaluru is also part of the efforts to tackle the debt trap.

Coffee Day Group is likely to sell 90-acre Tech Park, which is owned by founder Siddhartha's real estate venture Tanglin Developments Ltd (a unit of CDEL), to Blackstone for around Rs 3,000 crore, sources said.

Blackstone had earlier refused to comment on a query sent by CNBC-TV18 on the sale.

In a letter written by VG Siddhartha before his death, he had referred to the value of the Tech Park as being around Rs 3,600 crore.

In the release, Coffee Day board said it has also provided in-principal approval for disinvestment in its step-down subsidiary, AlphaGrep Securities in favour of Illuminati Software for an approximate amount of Rs 28 crore.

Note: The article has been updated to incorporate the latest developments

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First Published on Aug 14, 2019 02:52 pm
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