Coffee Day down 10%; IDBI clarifies it has no exposure to co.

The company's board on Wednesday decided to probe the personal and off-record financial transactions allegedly made by V G Siddhartha, apart from evaluating various options to deleverage the balance sheet.

Aug 01, 2019 06:08 IST India Infoline News Service

Shares of Coffee Day Enterprises are down 10% in today's trade.

The company's board on Wednesday decided to probe the personal and off-record financial transactions allegedly made by V G Siddhartha, apart from evaluating various options to deleverage the balance sheet.

The board also appointed SV Ranganath as the interim chairman of the company.

Meanwhile, IDBI Bank issued a clarification stating that it has no exposure to Coffee Day Enterprises.

The company stated in a filing, "A news item has appeared in some media detailing a list of lenders exposure to Cafe Coffee day (CCD). In this list, an exposure of Rs. 4575 crore has been shown from IDBI Trusteeship Services Ltd., (ITSL) which is being misinterpreted as liabilities with OBI Bank. This is not a fact, IDBI Bank has no exposure in CCD. We would also like to clarify that. ITSL is not a lender to any entity. It acts as Share Pledge Trustee / Debenture Trustee I Security Trustee in various cases. ITSL is holding the pledge of shares in the capacity as Share Pledge Trustee / Debenture Trustee / Security Trustee, as security for securing the loans/ investments extended by the lenders/Investors to the respective borrowers."

Shares of IDBI Bank are trading flat with a negative bias.

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