KKR Mauritius sells 3.04% stake in Coffee Day

Private equity investor KKR Mauritius has sold 3.04 per cent of its stake in Coffee Day. It has retained 3.3 per cent of its stake. Before the sale KKR held a 6.07 per cent stake in Coffee Day Enterprises. 

KKR Mauritius said in a disclosure to Securities and Exchange Board of India (SEBI) that it sold half of its 1,28,26,912 shares through open market sale on the stock exchange.

The PE investor said that it sold 64,29,086 shares carrying voting rights, while 63,97,826 shares carrying voting shares have been held, translating to 3.04 per cent and 3.03 per cent respectively.

The open market sale was carried on in eight tranches in July and August. On July 30, the investor offloaded 10,00,000 shares, 5,00,000 on August 2, 21,00,000 on August 3, 4,57,066 on August 4, 1,15,000 on August 5, 21,000 on August 6, 13,498 on August 9, and 22,22,522 on August 18. 

KKR Mauritius invested Rs 360 crore in Coffee Day in 2010 to purchase over a fourth of the chain. In 2018, it sold 5.9 per cent stake for Rs 405 crore. In 2019, the coffee chain’s founder VK Siddhartha was found dead. He was under pressure from lenders, tax officials as well as investors. Coffee Day Enterprises’ share value took a hard fall from over Rs 360 to less than Rs 30 apiece. 

Shares of Coffee Day Enterprises Ltd were locked in 5 per cent lower circuit on BSE on Monday. The stock opened 5 per cent lower at Rs 26.30 against the previous close of Rs 27.65. Market cap of the firm fell to Rs 555.59 crore on BSE.

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