BSE seeks clarification from CCD on Siddhartha's letter

Cafe Coffee Day (CCD) Founder V G Siddhartha (PTI Photo)

The Bombay Stock Exchange (BSE) has sought a clarification from Coffee Day Enterprises Ltd with regard to non-disclosure of material information related to V G Siddhartha, Chairman and Managing Director of Coffee Day Enterprises, who is reportedly missing.

"Certain media reports have published a document, purportedly written by V G Siddhartha and which is addressed to the Board and employees of Coffee Day Enterprises. However, it has been observed that the company has not disclosed the same with the exchange," the BSE said.

Earlier, this morning a letter said to have been written by Siddhartha surfaced, in which he mentioned that he was under tremendous pressure from one of the private equity partners and lenders to buyback shares. This led him to succumb to the situation. Siddhartha said that he had to borrow a large sum of money from a friend to partially buy back shares. 

Meanwhile, the company's board of directors is holding a crucial meeting in Bengaluru this evening to decide on who should lead the company in the absence of Siddhartha. The outcome is expected later this evening, company sources said.

 

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