Coffee Day shares fall 7 per cent as I-T dept raids offices, residence

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Business, Companies

Residence of V G Siddhartha who is chairman and managing director of CDE was also raided.

Cafe Coffee Day chains are run by Coffee Day Enterprises.

Mumbai: Shares of coffee chain Coffee Day Enterprises fell by as much as 7 per cent in early morning trade on Thursday as news that income tax department has raided company premises as well as the residence of chairman of the company poured in, CNBC TV18 reported.

Searches were conducted early in the day at multiple company premises that included offices and residence. Tax sleuths were seen at the residence of V G Siddhartha who is chairman and managing director of the Coffee Day Enterprises, the report added.

According to reports, Siddhartha is an entrepreneur and a venture capitalist. He is son-in-law of former external affairs minister S M Krishna who was Karnataka chief minister also before becoming MEA. Krishna had joined BJP in March this year.

A report on said Mindtree share price also went down by more than 2 per cent as Siddhartha and Coffee Day Enterprises hold some stakes in the software company.

Siddhartha holds 3.25 per cent stake in Mindtree while Coffee Day Enterprises and Coffee Day Trading have 10.39 per cent and 6.3 percent shareholding in the company as of June 2017.

At 09:36 hours IST, the stock price was quoting at Rs 232.00, down Rs 9.90, or 4.09 percent on the BSE, the report said.