Shares of CCD to stop trading on exchanges

Shares of CCD to stop trading on exchanges

In the aftermath of Siddhartha's untimely death, former chief secretary of Karnataka, SV Ranganath was made the interim chairman of the company

A view of a Cafe Coffee Day retail chain outlet belonging to coffee baron and founder V.G. Siddhartha in Bangalore on July 31, 2019. (AFP Photo)

The shares of Bengaluru-based embattled entity Coffee Day Enterprises, along with CG Power have been barred from being traded on both the exchanges -- BSE and NSE -- from February.

The action on both the firms comes in the wake of these entities not being able to file their quarterly results for two consecutive quarters -- June 2019 quarter and September of this financial year. 

"...companies have not complied with requirements of Regulation 33 (i.e. submission of financial result) as per SEBI (LODR Regulation, 2015 for consecutive quarters i.e. June 30, 2019, and September 30, 2019, and/or not paid the fine amount levied for said non-compliance)," the circular by NSE said.

In a separate circular by BSE, which has barred the trading of five more securities, said that the promoters' shareholdings in all companies, including Coffee Day have been frozen.

"Freezing of the entire shareholding of the promoter and promoter group in the noncompliant listed entity as well as all other securities held in the Demat account(s) of the promoter and promoter group w.e.f January 10, 2020, till further notice," the circular by BSE said.

The promoter group at Coffee Day enterprises owns 25.35% of the company's share capital, which translates into Rs 161.4 crore on Monday's closing prices of the stock. Since the beginning of August, when the company's founder and then chairman late V G Siddhartha went missing and committed suicide, the company's shares have gone down by 68%, and are currently trading at Rs 39.65 apiece.

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