Coffee Day Enterprises shares slipped over 4% in an early trade Thursday on the back of reports that the Income Tax department conducted raids at the residence of cafe’s owner VG Siddhartha and multiple outlets in different cities. The shares of Coffee Day Enterprises were trading at Rs 231.55 down by more than 4.15%.
Coffee Day Enterprises Ltd runs popular cafe chain Cafe Coffee Day all over India. Its owner VG Siddhartha is also the son-in-law of former Karnataka Chief Minister SM Krishna, who recently joined the BJP. The Income Tax department reportedly raided outlets of CCD at multiple locations.
The share price of MindTree Ltd, a company in which VG Siddhartha, Coffee Day Enterprises and Coffee Day Trading hold stakes, also fell by more than 2%. MindTree Ltd’s shares were trading at Rs 457.25 down by 1.57%.
The IT department said that the raids on the cafe chain were conducted in relation to a new case to verify if there was any undisclosed income, The Hindu reported. The I-T department also clarified that the raids were not related to any old case.
The company reported a 51.15% increase in consolidated net profit to Rs 26.83 crore for the first quarter ended June 30, 2017. The company had reported a net profit of Rs 17.75 crore in the corresponding period of previous fiscal. Its total income from operations grew to Rs 830.41 crore during the quarter under review as against Rs 755.86 crore in the corresponding quarter a year-ago.