Drop in Share Price.

Shares of Coffee Day Enterprises Ltd dropped 20 per cent on Tuesday, eroding Rs 813 crore from its market
valuation, after reports surfaced that its Chairman and Managing Director V G Siddhartha has gone missing.

The scrip tumbled 19.99 per cent to Rs 154.05 , its 52-week low as well as its lower circuit limit on the BSE.

On the National Stock Exchange (NSE), shares droped straight down at high speed 20 per cent to its lowest
trading permissible limit for the day as also its one-year low of Rs 153.40 apiece.

Led by the massive drop in its share price, the company's market valuation dived Rs 812.67 crore to Rs 3,254.33
crore on the BSE.

CCD crisis: Regulator (SEBI)

Private equity players and independent directors has come under the scanner of markets regulator Sebi in the
wake of a crisis at the leading coffee chain operator CCD.

The regulator is also looking at trading pattern in the company shares and the disclosures made by the company
to check any lapses.

The role of the company's audit & other board committees and their members is also under the regulatory
scanner

Lessons learnt for investments preferences from CCD

It is better to use your own cash and savings to start your venture during
the angel funding stages till it turns bright.

Even when your business turns profitable, prefer to continue bootstrapping.

Reinvest the amount that you earn rather than procuring outside funds.
Your investment may look small but you stay secure.

Only in cases where you see an immense opportunity for growth, opt for
equity investment rather than debt.

Even with equity investments preference should be as below –

1. Equity partner who adds some strategic value to company’s growth

2. VC’s and PE firms
3. HNIs and non professional VCs