A day after the death of Café Coffee Day’s founder V.G. Siddhartha, reports suggest that he had personal debts amounting to Rs. 1,000 crores or above. This could have resulted in Siddhartha being under acute stress and pressure which ultimately lead to his suicide.
The document accessed by a leading daily from the Department of Corporate Affairs under Ministry cites that the source of these debts were incurred through dealings related to Devadarshini Info Technologies, Gonibedu Coffee Estates, and Coffee Day Consolidations. These enterprises are Siddhartha’s personal holding companies.
According to Mangaluru Police investigating the death of Siddhartha, the coffee tycoon had pledged his shares in these companies for a loan.
The report reveals that Siddhartha had lend money from three Mauritius-based private equity firms – Standard Chartered Private Equity, Credit Opportunities Fund, and Asia Credit Opportunities. He also has debts in a U.S. private equity firm KKR.
Apart from these foreign companies, Siddhartha had borrowed huge sums from RBL Bank, APAC, A.K. Capital, Aditya Birla Finance, SSG Asia, Kotak Mahindra Bank, and STCI Finance. In all these undertakings, the coffee magnate had pledged shares from Gonibedu Coffee Estates, Tangline, Devadarshin Information Technologies, and Coffee Day Global.
As per data, currently, the total debt of Coffee Day Enterprises sums to Rs. 6,547 crore, a figure around thrice the valuation of the company.
Nevertheless, Siddhartha had already started efforts of nullifying the overdrawn amount by selling shares of MindTree, where he held the highest individual stake, to Larson & Turbo as the first step towards reducing his overall debts.
Siddhartha was reported missing on July 29. His body was recovered from Netravathi river, Mangaluru. The suicide note purportedly written by Siddhartha states pressure from private equity partners forced him to take such a drastic step.