Cafe Coffee Day raids: Stocks decline upto 10% over concealed income rumour worth Rs 650 crore

Cafe Coffee Day raids: Stocks decline upto 10% over concealed income rumour worth Rs 650 crore

The shares of Coffee Day Enterprises, the operator of Café Coffee Day chain, were under tremendous pressure in early trade on Monday.

The company's stock declined over 10.5% over the reports published in media hinting towards to issues relating to undisclosed income.

The income-tax department concluded its search on the Coffee Day Group companies on Sunday. The sales were started on September 21.

In a statement, the I-T department said: "The searches in a group involved in coffee, tourism, information technology and other areas concluded with an admission of previously concealed income exceeding Rs 650 crore. The detection of undisclosed income is expected to be a much higher figure".

The department further added, "There are a number of other issues including violations of other statutes on which there is no disclosure, but relevant evidence has been found. These will be pursued effectively with vigour, energy and imagination".

The stock has fallen 13 percent in the past one month, while its three-day fall stood at 13 percent as well.

At 10:18 hrs Coffee Day Enterprises was quoting at Rs 210.60, down Rs 21.30, or 9.18 percent, on the BSE.