“Coffee is a beverage that puts one to sleep when not drank,” said French humorist Alphonse Allais. Investors in Coffee Day Enterprises Ltd might be tempted to think the company is in need of some sort of a caffeine boost. After all, Coffee Day shares are down 18% compared to its November 2015 IPO price of ₹328. They had briefly risen above the issue price early this year, before falling to the ₹270 levels.
Mint had recently reported that Coffee Day chairman and managing director V.G. Siddhartha is looking to offload his and the company’s stakes in Mindtree Ltd. Coffee Day Enterprises owns a 17.1% stake in mid-cap IT company. Based on the company’s market capitalization on Wednesday, the shares are worth about ₹2,390 crore